Mosaic cuts 8% of Workers at Potash Mine
CBJ — Weak international demand has led to U.S. fertilizer company Mosaic laying off 46 unionized workers, or about 8% of its total workforce at its Colonsay, Saskatchewan potash mine.
Potash prices have fallen in the past year due to excessive mining capacity and reduced demand in key markets. Dry weather has limited crop production in India and a new Chinese tax and weak economy in Brazil also have hampered sales.
Another issue is that the Colonsay site has higher production costs than Mosaic’s other Saskatchewan mines. In September, Mosaic said it would curtail production there due to delayed fertilizer purchases in Brazil and North America.
The cuts to unionized jobs are permanent and take effect immediately.
Mosaic continues to expand its Esterhazy, Saskatchewan potash mine, at least for now.
Mosaic shares gained 0.7% to $35.42 on the New York Stock Exchange.