Potash Corp. Restarts Largest Mine Shut by Strike
By Christopher Donville
Aug. 26 (Bloomberg) -- Potash Corp. of Saskatchewan Inc., the world's largest producer of the crop nutrient, restarted the biggest of three mines shut down by a strike.
Local staff and workers from other Potash Corp. facilities resumed production and milling at the Allan mine yesterday, Saskatoon, Saskatchewan-based Potash Corp. said today in a statement on its Web site.
About 500 workers represented by the United Steelworkers have been without a contract since the end of April and have been on strike since Aug. 7 to back demands for higher wages. No new talks are scheduled between the two sides, the company has said.
``We're in the business of producing potash, and we intend to do that to the best of our abilities,'' Potash Corp. spokesman Bill Johnson said today in a phone interview.
Allan produced 1.74 million metric tons of potash last year, 19 percent of the company's output of the nutrient, according to company data. The company is evaluating plans to restart output at its Cory and Patience Lake mines.
Potash Corp. is running two shifts at the mine instead of the normal four shifts, Johnson said.
Profit Triples
The company, which also makes phosphates and nitrogen-based fertilizers, said last month that second-quarter net income more than tripled to a record $905.1 million as sales almost doubled to $2.62 billion.
The three mines affected by the strike accounted for 30 percent of the company's 2007 production of potash.
Previously announced projects to expand production capacity at the three mines have been ``minimally impacted'' by the strike, the company said. ``Each project is continuing on schedule.''
Potash Corp. operates six potash mines in Canada, five in Saskatchewan and one in New Brunswick. The Allan mine is about 40 kilometers (25 miles) east of Saskatoon.
Potash Corp. rose C$1.61 to C$187.71 at 4:10 p.m. in Toronto Stock Exchange trading. The shares have more than doubled in the past year.
To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.
Last Updated: August 26, 2008 16:52 EDT
http://www.bloomberg.com/apps/news?p...
