Nutrien permanently closes New Brunswick potash facility

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.