The Mosaic Company will shutdown its Colonsay, Sask., potash mine for the rest of 2016.
About 330 employees have received temporary layoff notices as a result of the idling, the company said in a release.
The potash supply line is oversupplied and prices are weak.
The Colonsay mine’s proven annual production capacity is 2.6 million tonnes.
Mosaic’s lower-cost Esterhazy and Belle Plaine mines, in combination with current inventory, will allow it to meet its short-term potash supply needs.
“We continue to execute the difficult but necessary actions to ensure Mosaic will be as competitive as possible across the business cycle,” said president and chief executive Joc O’Rourke in a news release.
“Lower global potash demand and market prices require that we curtail production.”
