Nutrien to increase potash production in response to tightening global market conditions

LONDON (ICIS)–Nutrien will increase potash production by approximately 500,000 tonnes in the second half of 2021 compared to earlier expectations, in response to tightening global potash market conditions, the Canadian fertilizer producer said.

Nutrien has a flexible network of six potash mines with competitively positioned, available capacity that it can use to help supply global demand.

“We are responding to strong market fundamentals to ensure our customers have the crop inputs they need to feed a growing population. Our network of flexible production and extensive logistics is designed to provide reliable supply and we have a unique ability to be agile and respond to changing market conditions. Our potash asset portfolio is optimally positioned to meet customer needs and drive shareholder value,” Nutrien’s Executive Vice President and CEO of potash Ken Seitz said.

Domestic and offshore potash sales volumes are currently fully committed through September, based on its original production profile for 2021. The producer will be actively hiring additional employees and adapting its resources to help increase production across most of its potash mines, ramping up its Vanscoy facility in Canada in particular, and will ensure the highest safety standards are maintained in the process.

Nutrien expects these actions to result in upward revisions to potash-related guidance for the second half of 2021 from both a volume and EBITDA (earnings before interest, tax, depreciation, and amortisation) perspective, which will be addressed in second-quarter 2021 results.

The producer added that it continues to actively monitor the market and evaluate other potential options to further increase production if demand warrants it and may provide additional information in this regard at a later date.

Last week, US fertilizer producer Mosaic said it will close the K1 and K2 potash mine shafts at its Esterhazy project in Saskatchewan, Canada immediately.

The producer said that the closure of K1 and K2 are key pieces of the transition to K3 but the timeline for the closure has been accelerated by nine months due to a recent acceleration of brine inflows.

Mosaic will also resume production at the Colonsay potash mine in Saskatchewan and recall workers as soon as practical. The restart will offset a portion of the production lost by the early closure of the K1 and K2 shafts at Esterhazy, and position Mosaic to take advantage of the expected strong potash markets in 2022 and beyond.

Thumbnail image shows a farmer ploughing fields. Potash is used as a fertilizer in farms. Photo by TIM KEETON/EPA-EFE/Shutterstock