PotashCorp mine closure in Sussex was unexpected, reporter says (CBC News New Brunswick – January 20, 2016)

http://www.cbc.ca/news/canada/new-brunswick/

Mining reporter Ian McGugan says government intervention would not have stopped the layoffs

The sudden closure of the Picadilly mine operation in Sussex was unexpected even though there were signs the potash industry was in trouble, according to an industry reporter.

Potash Corporation of Saskatchewan announced on Tuesday it was indefinitely closing the Picadilly mine operation and cutting 430 jobs.

Ian McGugan, a mining industry reporter for the Globe and Mail. told Information Morning Moncton on Wednesday there may be hope for the potash industry in the next few years. McGugan says government intervention would not have stopped the layoffs.

“I think what you are looking at is the company making a very difficult decision … it’s not something they wanted to do,” he said.

“I think they are making a rational decision to try and focus production on their lowest cost mines in what has become a very difficult market, a market that’s been plagued by falling prices.”

McGugan says the sector has been deteriorating with falling prices for farm goods and falling prices for commodities.

For the rest of this article and a radio interview, click here: http://www.cbc.ca/news/canada/new-brunswick/potash-mine-closure-industry-1.3411675

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