PotashCorp to cut production
By Regina Leader-Post
In an effort to match its supply with declining market demand, Potash Corp. of Saskatchewan Inc. announced today that it will scale back potash production in 2009 by two million tonnes starting next month.
December 11, 2008
Saskatoon, Saskatchewan –Potash Corp. of Saskatchewan Inc. will reduce its 2009 potash production by two million tonnes beginning in January in an effort to match supply with market demand.
Based on its 10 million tonnes of production in 2007, the cut is about 20 percent of the company's potash output. This year is a less reliable barometer because of expansions and the United Steelworkers three-month strike.
Demand for all fertilizers -including potash, nitrogen and phosphate -is declining due to the global economic crisis.
"We anticipate slow potash demand through the first quarter of 2009," said PotashCorp president and CEO Bill Doyle in a statement.
"Beyond this, we see demand accelerating through the balance of the year as farmers deplete existing stocks and work to rebuild global grain inventories from extremely low levels. … We will have the capability to ramp up production in 2009 as necessary to meet demand."
The company's Lanigan mine expansion in Saskatchewan opened this summer, adding 1.5 million tonnes to the company's production capacity. Patience Lake, a few kilometres east of Saskatoon, is now ramping up production after its expansion added 360,000 tonnes of capacity. Further expansions are underway at the Rocanville and Cory mines, also in Saskatchewan, bringing the total production capacity to 13.5 million tonnes by 2010.
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