Mosaic curbs potash production in Saskatchewan because of weaker prices

REGINA – Mosaic Co. is cutting potash production at one of its Saskatchewan mines because the market for crop nutrients has softened.

Mosaic says in a news release that it will reduce output at its Colonsay mine by extending maintenance downtime.

It also plans to continue slower production in its phosphates business.

The company says the move is primarily because of delayed fertilizer purchases in Brazil and North America.

It says a volatile dollar, lower grain and oilseed prices, political and economic uncertainty, along with global equity market declines, have weakened prices.

Mosaic president and CEO Joc O’Rourke says the long-term outlook for crop nutrient demand remains positive, but near-term challenges mean production and costs must be controlled.

In its second quarter report released Aug. 4, Mosaic said it expected “robust global shipments in the second half of 2015.” The financial guidance looking forward at that time said total sales volumes for potash were expected to range from 1.6 to two million tonnes for the third quarter of the year.

Mosaic says potash volumes are now expected to be in the bottom half of that range.