Weak market conditions of potassium does not improve in the near future, said Tuesday the company Potash Corp., based in Saskatchewan. Company nutritional agrovista announced that it will suspend work at its canadian mine for an indefinite period.

Potash Corp. stated that transfers its Picadilly mine in the canadian province of new Brunswick in maintenance mode, which will lead to a reduction of 420-430MHz jobs.

Potash prices fell sharply last year under pressure for extended production capacity, weak grain prices and weakening currencies in major consumers such as India and Brazil is the largest Potash Corp customers.

The company's management does not expect in the near term, rapid changes in the situation. But the company is still optimistic about long-term prospects of their business.

As the demand for potash fell worldwide, Potash Corp., the largest fertilizer company in the world in power production, had over the past few months to close the potash mine in Penobsquis new Brunswick to suspend production at three mines in Saskatchewan.

Potash Corp., which was more than 5, 000 employees worldwide in late 2014, announced that will leave 35 employees at the mine Picadilly to support the new operation.

Approximately 100 affected employees can be transferred to Saskatchewan.

Potash Corp. said that expected costs of dismissal and transfer of employees to the level of $35 million in the first quarter as a result of the suspension of operations in Picadilly.

Suspend work at the mine can help Potash Corp. to reduce the annual cost of products sold of $40-50 million and eliminate capital expenditures of $50 million in 2016 and $135 million in 2017-2018, said the company.

Source: Thomson Reuters