| Potash Corp. to Suspend Potash Operations at Picadilly Mine | |
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Potash Corporation of Saskatchewan Inc. POT said that it will indefinitely suspend its Picadilly, New Brunswick potash operations. The decision was taken by the company to sustain its business and meet the needs of its stakeholders over the long term.
The company decided to suspend operations at the mine in order to optimize production, which will help increase its competitiveness and reduce cost of goods sold by $40–$50 million in 2016. However, this will be partly offset by severance and transition costs. The suspension will also result in capital savings. The company expects to eliminate significant capital expenditures, including capital of roughly $50 million in 2016 and $135 million in 2017/18.
Further, the suspension of operations will enable Potash Corp. to maintain long-term operational flexibility and preserve jobs across the company.
Also, the suspension is anticipated to result in a reduction of about 420–430 people in workforce at New Brunswick. About 35 employees will be retained at Picadilly to run the operation in care-and-maintenance mode. In order to minimize the impact on jobs, the company will keep more than 100 positions available at its Saskatchewan operations for New Brunswick employees and they will also be provided with relocation assistance. Further, the employees who do not stay behind at Picadilly or those who choose not to relocate to Saskatchewan will be offered severance and assistance packages.
Potash Corp. will also set up a CDN$5 million community investment fund, which will consist of funding streams to aid its employees with job transition assistance, including skills training and educational support, alongside providing financial support to local businesses and charitable organizations.
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Potash Corporation of Saskatchewan Inc.
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CODE : POT.TO |
ISIN : CA73755L1076 |
CUSIP : 73755L1076 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Potash Corp. is a producing company based in Canada. Potash Corp. is listed in Canada. Its market capitalisation is CA$ 21.7 billions as of today (US$ 17.2 billions, € 14.4 billions). Its stock quote reached its lowest recent point on March 24, 1995 at CA$ 10.00, and its highest recent level on September 21, 2007 at CA$ 99.07. Potash Corp. has 840 009 984 shares outstanding. |