Nutrien permanently closes New Brunswick potash facility, will take US$1.8B writedown

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 impairment charge in the third quarter due to the closure.

READ MORE: Nutrien says no plans to close potash mines as it looks to boost efficiencies

It says the decision to close the facility reflects the company’s ability to increase potash production at a significantly lower cost than resuming operations in New Brunswick.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Sign up for weekly money newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

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.

1:48 Two largest potash companies in Saskatchewan merge into Nutrien

• Two largest potash companies in Saskatchewan merge into Nutrien
• BHP delays decision on Jansen potash mine
• K+S opens new potash mine; first new mine in Sask. in more than 40 years
• Potash Corp sales on the rise as officials hope it’s the start of a trend
• PotashCorp Q4 profit hit by weak prices, low margins for fertilizers

Previous Video

Next Video

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.