(Adds comment on no further cuts planned, background on other
By Rod Nickel
WINNIPEG, Manitoba Nov 23 Fertilizer maker
Potash Corp of Saskatchewan Inc said on Wednesday that
it was reducing jobs and output at one Canadian mine and
temporarily curtailing production at two others as the sector
struggles with weak prices.
The company said it would cut production at its Cory,
Saskatchewan, mine to 0.8 million tonnes a year from 1.4
million, resulting in a reduction of 100 jobs and 40 temporary
positions starting in February.
Also in Saskatchewan, Potash will curtail production for six
weeks at its Lanigan mine starting in January and for 12 weeks
at Allan starting in February.
The changes come after potash prices fell to decade lows
this year due to excessive global capacity, although they have
recently improved. Potash Corp is still completing a multiyear
expansion of its Rocanville, Saskatchewan, mine.
The production cuts will allow the company to best use
output from its lowest-cost mines, including Rocanville, Mark
Fracchia, president of its potash division, said in a statement.
Potash Corp has long matched supply to demand, and that
practice will continue, spokesman Randy Burton said.
"We hope and expect nothing further will be required" in
production cuts, he said.
Potash Corp shares dipped 1 percent in New York.
Rival Mosaic Co is looking to restart its idled
potash mine at Colonsay, Saskatchewan next year, and K+S AG
plans to open a new mine in the province in 2017.
Pending regulatory approval, Potash Corp is merging with
rival Agrium Inc, which runs a potash mine at Vanscoy,
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by
Chizu Nomiyama and Lisa Von Ahn)