Head of Nutrien Ltd. says that the company in Saskatchewan has enough space for the expansion of potash as it does not make sense to invest in expanding production into more expensive regions.
Executive Director Chuck Magro said in a financial analytical report at the conference that the ashes of New Ashbourne ash closed.
As a result of the closure, in the third quarter of 2018, the company will register a $ 1.8 billion non-cash security.
"The decision is quite obvious when we look at, today we have over five million tonnes of overcapacity in Saskatchewan, and if we invest a little capital in six facilities in Saskatchewan, we could even go much higher than our operational capability, which lists 18 million tonnes for a very economic enlargement. "
The economy of the East Coast Mine could not compete with Prairie operations, Magro said.
"The cash costs of production in New Brunswick are just as high as Saskatchewan."
Nutrien set up the Picadilly mine for supply and maintenance at the beginning of 2016 with a weak fertilizer market. The decision to permanently close the mines means approximately 430 jobs, will not come back to the place near Sussex, N.B.
In addition to the bad news for people living in the Sussex area, Halidax Corridor Resources Inc. once had a relationship with the owner of a bathing mine as a natural gas supplier.
But Steve Moran, chairman and chief executive of the corridor, says Nutrien's decision to permanently close the mine would have little impact on his oil and gas company.
"People in this area have always insisted on hoping to open this mine," Moran said in a telephone interview from Calgary.
"When they (Potash Corp.) worked, they used a certain amount of gas, but they own a certain amount of gas that we produce. So, when they went to nursing and maintenance modes, we still supplied some gas … All this will happen after it has been permanently closed, all the gas we produce will be on the market and will not go further to them and to a large extent only spend their share. "
The Corridor has a business model designed primarily for the energy market in New England. Moran said that his company looks at the price of natural gas in the northeast of the United States and delivers its natural gas to its market when the price is highest, usually from December and in the cold winter months.
The closure of the mine does not affect the corridor, as it did not provide an important source of income during its operation, he said.
"It kind of simplifies our lives in the sense that we do not have to worry about providing gas," Moran said.
The relationship between the corridor and Nutrien now mostly coordinates the sale of natural gas. But Moran acknowledged that the corridor may consider buying a Nutrien gas share now, when it does not need fuel, but stressed that it should be at the right price.
"This is not something we have estimated. They never wanted to sell their gas because they would use their gas if they were reopened, but I think that (acquiring Nutrien's natural gas) could be something we will look for in the future," said Moran.
At the time of the temporary closure of 2016, Nutrien was known as the Sotočjean hen house. Earlier this year, it became Nutrien after its merger with Agrium Inc., which added more productive opportunities to the company.
On Monday, Nutrien, who runs books in US dollars, reported a net loss of $ 1.04 billion in the fourth quarter after the company closed a $ 1.8 billion mine at the mine.
The loss was $ 1.70 per share for the quarter ending September 30, compared with a profit of $ 53 million or six cents per share a year ago.
Adjusted net earnings reached 47 cents per share, above analysts' expectations of 40 cents per share, according to Thomson Reuters Eikon.
According to forecasts for 2018, Nutrien has increased its net salary guidelines for 2018 to between 2.60 and 2.80 USD, from previous guidelines of USD 2.40 and USD 2.70 per share.
The company also raised its quarterly dividend to 43 cents, which is 40 cents.