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.

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.

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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.