COLONSAY - The Mosaic Company has announced it has temporarily curtailed production at its Colonsay potash mine location.
According to the company’s President and CEO Joc O'Rourke in a news release, the decision “reflects near-term dynamics and not long-term agricultural market fundamentals. Crop prices remain strong and continue to support healthy grower economics.”
"After a year of reduced applications, we believe farmers are incentivized to maximize yields, which should drive significant recovery in fertilizer demand in 2023."
The company states Colonsay was operating at an annual run rate of 1.3 million tonnes prior to the shutdown, with plans to expand annual output to between 1.8 to two million tonnes by late 2023 following restart of mine's second mill. The company is reporting slower than expected demand in the second half of 2022, and that their inventory levels are sufficient to meet near-term demand.
The company also reported underground development work will continue in anticipation of the restart of both their mills in early 2023.
