PotashCorp mine closure put off for now

PotashCorp Penobsquis mine in New Brunswick.

Canadian PotashCorp (TSX, NYSE:POT), the world’s largest crop nutrient company by capacity, has decided to temporarily extend operations at its the Penobsquis mine in New Brunswick, as it ramps up production at the nearby $2 billion Piccadilly plant.

In a statement Monday, the Potash Corporation of Saskatchewan said it has rescinded previously announced layoff notices affecting 50 employees at Penobsquis, citing tight conditions in the granular potash market.

The layoffs were part of cuts to 18% of the miner’s workforce, representing more than 1,000 jobs, announced in December, as PotashCorp struggled with slumping demand and weak prices for the crop nutrient.

Penobsquis was previously anticipated to cease by the second quarter of 2014. But the company, which has been working on an expansion plan since 2007,  says ramp-up activities at the Piccadilly mine are continuing on schedule, with initial production expected during the fourth quarter of 2014.

Stocks in the company were up about 1.45% this morning in both the New York and Toronto stock exchanges.

Image courtesy of New Brunswick’s Energy and Mines.