Make Kitco Your Homepage

Nutrien's potash earnings to take a hit on mine shutdowns

Kitco News

Sept 11 (Reuters) - Fertilizer producer Nutrien Ltd said on Wednesday it would face a $100-$150 million reduction in its annual potash EBITDA as a result of inventory shutdowns at three potash mines due to a short-term slowdown in global potash markets.

The company said it planned eight-week inventory shutdowns at its Allan, Lanigan and Vanscoy potash mines in the fourth quarter, adding it would reduce potash production by about 700,000 tonnes.

“Despite the current short-term market conditions, we remain positive on potash demand for 2020, as well as the medium to long-term potash fundamentals,” Nutrien said in a statement.

Nutrien lowered its 2019 potash sales volume forecast in July, hurt by the China-U.S. trade war and lower demand from India.

Reporting by Sathvik N in Bengaluru; editing by Darren Schuettler

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.