US Mosaic announces temporary curtailment at Colonsay potash mine in Saskatchewan

HOUSTON (ICIS)–US fertilizer producer Mosaic has announced that it has temporarily curtailed production at its Colonsay potash mine in Saskatchewan as it has sufficient supply amid the current slow demand within the market.

The producer said prior to this action that Colonsay had been operating at an annual run rate of 1.3m tonnes with plans to expand annual output to 1.8m-2m tonnes by late 2023 following the restart of mine’s second mill.

Mosaic said with demand returning slower than it had expected in the second half of 2022 their  inventory levels are enough to cover near-term demand.

It added 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,” said Joc O’Rourke, president and CEO.

“After a year of reduced applications, we believe farmers are incentivised to maximise yields, which should drive significant recovery in fertilizer demand in 2023.”

In the US, post-harvest applications of potash have been diminished so far with harvesting running later in some areas, which has lessened demand to this point.

In addition there is significant carryover inventory in some areas, while others are facing the ongoing issue of slow barge transportation due to low river levels, which is keeping prices high.

In Nola, potash barge movement has been increasingly thin through the fall season with values coming under pressure until recently as the lack of new business has now provided some price stability.