Picadilly potash mine in Penobsquis set to open soon
Project survived slump in potash market and layoffs
CBC News·
The new mine is said to have a lifespan of 20 years. (CBC)
The new Picadilly potash mine in Penobsquis is about to open seven years after being announced and after surviving a slump in the potash market.
On Wednesday, several dump trucks could be seen hauling potash out of the mine and by the end of the week mine officials expect to reach its deposits to begin production.
Jean-Guy Leclair, general manager of Potash Corp. Penobsquis says it’s a proud week.
“Obviously for this week it's very exciting, because people know that we're almost there,” he said. Since the project was announced in 2007, Potash Corp. has been concentrating on all the infrastructure needed to mine potash.
The tunnels have been sorted out and they're finally at the area where they can hit the deposits. The initial announcement of the mine led to a boom in the local economy. At the time, then-Premier Shawn Graham boasted about it when construction began.
“This is a long-term project which is going to create hundreds of jobs and spin-off jobs on top that that's going to continue to grow New Brunswick's economy,” he said in 2008.
The old Picadilly potash mine. (CBC)
The $2.2 billion project hit a bump in the road as it neared completion with slumping demand for both potash and phosphates. That resulted in more than 70 layoffs.
Moffetts hardware store in nearby Sussex has many of its customers work for Potash Corp. according to Jacques Leblanc.
“I think it's gonna be great,” he said. “As long as the price of potash stays high and that the people that are working there will keep on working there and hopefully it employs more people.”
Initially, the mine was supposed to add 130 jobs, but Leclair says there is a different reality today. “Our goal is to still close the old mine and keep the new mine open. That is still our goal. Like the manpower, there's not going to be a big difference with the manpower,” he said.
The new mine has a projected lifespan of 73 years.
PotashCorp to close Penobsquis mine at end of November
140 contract workers affected by closure as production shifts to Picadilly mine
CBC News·
PotashCorp New Brunswick announced early Thursday it will stop potash mining operations at its Penobsquis mine near Sussex by the end of November.
The company says about 140 contract workers employed by Vic Progressive Diamond Drilling Inc. will be affected by the closure.
Potash production will shift to the adjacent Picadilly mine.
"This move will allow us to focus on production at the lower-cost Picadilly mine, which is the future of our operations in New Brunswick," said Mark Fracchia, president of PCS Potash.
"While it's never easy to close a facility and we understand the difficulty for those directly impacted by the decision, it is a necessary step in strengthening the sustainability of our company and our Picadilly operations."
The Penobsquis mine was closed early in 2014 following a company-wide review by PotashCorp, and a number of permanent employees were transferred to the new Picadilly mine and others were offered voluntary severance packages.
However, strength in global potash demand and customer requirements led the company to resume production at Penobsquis in August 2014.
PotashCorp planned to phase out operations at Penobsquis beginning early next year, but has opted to close it earlier.
"With Picadilly continuing to ramp up its operations and a weaker macroeconomic environment, the decision has been made to permanently close the operation at the end of November," said the company's statement.
Picadilly is expected to produce up to 1.8 million tonnes of potash when it is fully operational.
PotashCorp suspends Picadilly mine in N.B., cuts 430 jobs
Saskatchewan company says mining near community of Sussex is suspended indefinitely
CBC News·
Potash Corporation of Saskatchewan announced on Tuesday it is indefinitely suspending its Picadilly mine operation near Sussex, N.B. (CBC)
Potash Corporation of Saskatchewan is indefinitely suspending its Picadilly mine operation near Sussex, N.B.
The move is expected to result in the loss of 420 to 430 jobs.
Mark Fracchia, the president of PCS Potash and a former general manager for the New Brunswick mine, told a news conference that the decision to suspend operations at the mine was "extremely difficult."
"This is just a very sad day for all of us. Most of all to the people who have given us so many years of loyal service, for the community of Sussex, for the province generally and certainly for all of us at PotashCorp," Fracchia told reporters.
"We had high hopes for Picadilly and my heart goes out to all the people who have worked so very hard for so long in building and operating the mine."
The executive said the New Brunswick mine was the most expensive of its operations because of the geology in the province.
He said the decision had more to do with global market forces and he said there was little the provincial government could have done to help the corporation.
Sussex Mayor Marc Thorne said he was in "disbelief" when he heard about the corporation's decision to suspend mine operations.
"It is just heartbreaking to hear this news today," Thorne said.
The mayor said he's unsure how the community will fill the economic hole.
All our high-paying jobs in the community are gone as of this morning.- Deon Alcock , contractor in Sussex
"The jobs have been well-paying jobs and quite frankly I don't see how they can be replaced," he said. Deon Alcock, an independent contractor worker in the area, said the news took people in the area by surprise.
"All our high-paying jobs in the community are gone as of this morning," he said.
"I think they are in the same boat as everybody else. They are surprised and thinking about other alternatives. But right now as we sit, there isn't many alternatives for anything in New Brunswick or Alberta."
Nutrien permanently closes New Brunswick potash facility
Company will take $1.8B writedown
The Canadian Press·
Nutrien headquarters are located in Saskatoon. (Trevor Bothorel/CBC)
Nutrien Inc. says it has permanently closed its New Brunswick potash facility after putting the operation on care and maintenance in early 2016.
The company says it will take a US$1.8-billion writedown in the third quarter due to the closure.
It says the decision to close the facility reflects the company's ability to increase potash production in Saskatchewan at a significantly lower cost than resuming operations in New Brunswick.
Nutrien, then known as the Potash Corp. of Saskatchewan before a merger, shut down its Picadilly mine near Sussex, N.B., at a loss of about 430 jobs close to three years ago to focus on its lower-cost operations in Saskatchewan.
The news was a shock at the time for the town of 4,300 after Potash Corp. had spent around $2 billion and six years building the facility.
The company said at the time that the closure would save it upwards of US$50 million a year amid a weak market for the fertilizer.
Potash Corp. announced a merger with fellow fertilizer company Agrium Inc. later in 2016, creating more combined supply within a single company.
