U.S. fertilizer company Mosaic Co has laid off 46 workers – Union members, or 8% of the workforce, in Colonsay, potash mine in Saskatchewan, Western Canada, because the manufacturer is experiencing difficulties due to weak demand.

Potash prices fell last year due to excessive capacity of the mining industry and declining demand in key markets. Dry weather has limited the production of grain in India, a new tax China and a weak economy in Brazil also hampered sales.

At Colonsay the production costs are higher than other Mosaic mines in Saskatchewan. In September, Mosaic announced that it will reduce production due to the delay of procurement of fertilizers in Brazil and North America.

The reduction of working - Union members are permanent and occur due to current market conditions, said the representative of the Mosaic.

A ray of hope in layoffs and mass firings is that Mosaic believes that the market is amenable to recovery amid gradual improvement of order, said analysts at Scotiabank. In any case, it is considered positive.

Mosaic continues to expand its potash mine in Esterhazy Saskatchewan.

Mosaic shares rose 0.7% to 35,42$ on the new York stock exchange.

Executive Director of ICL Israel Chemicals Ltd on Thursday said that China and India are making discounts on their next contracts with suppliers potassium.

Mosaic, Potash Corp. in Saskatchewan and Agrium Inc sell potash to these markets through joint venture Canpotex Ltd.

Source: Thomson Reuters