NYSE-listed Mosaic has temporarily curtailed production at the Colonsay potash mine, in Saskatchewan, as demand is returning more slowly than expected.
Prior to the curtailment, Colonsay had been operating at a yearly run rate of 1.3-million tonnes with plans to expand output to 1.8-million to 2.0-million tonnes by late 2023, following the restart of mine's second mill.
Mosaic states that its inventory levels are sufficient to meet near-term demand.
"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 fertiliser demand in 2023."
Underground development work will continue in anticipation of the restart of both mills in early 2023.