07 December 2022, Tampa: The Mosaic Company (NYSE:MOS) announced today that it has temporarily curtailed production at its Colonsay potash mine in Saskatchewan.
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. With demand returning slower than expected in the second half of 2022, Mosaic’s inventory levels are sufficient to meet near-term demand. 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 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.”
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