the producer of fertilizers Mosaic said on Tuesday it had temporarily reduced production of potassium at its mine in Colonsay, Saskatchewan, in the Canadaciting slower-than-expected demand.
Mosaic said in a statement that its inventories are adequate to meet short-term demand.
The company restarted operations at Colonsay in August 2021 after being idle for two years.
Potash prices soared this year due to sanctions against Russia and the Belarusthe second and third largest producers in the world after Canada.
However, prices subsequently dropped.
Mosaic’s decision to reduce production is short-term and long-term fundamentals look positive, Chief Executive Joc O’Rourke said.
The Florida-based company expects to restart both Colonsay sites in early 2023.
Colonsay was producing at a rate of 1.3 million tonnes per annum and plans an expansion to increase production to between 1.8 million and 2 million tonnes by the end of next year.
Rival Nutrien is undertaking its own potash expansion in Saskatchewan.
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