(Kitco News) - The Mosaic Company (NYSE:MOS) announced yesterday that it has temporarily curtailed production at its Colonsay potash mine in Saskatchewan.
According to the press release, prior to the curtailment, Colonsay had been operating at an annual run rate of 1.3 million tonnes with plans to expand annual output to 1.8-2.0 million tonnes by late 2023 following the restart of mine's second mill.
The company said that with demand returning slower than expected in the second half of 2022, Mosaic's inventory levels are sufficient to meet near-term demand, adding that underground development work will continue in anticipation of the restart of both mills in early 2023.
"Our decision to temporarily curtail Colonsay reflects near-term dynamics and not long-term agricultural market fundamentals. Crop prices remain strong and continue to support healthy grower economics," commented President and CEO Joc O'Rourke. "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 Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry.
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