PotashCorp suspends Picadilly mine in N.B., cuts 430 jobs

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Potash Corporation of Saskatchewan is indefinitely blackballing its Picadilly mine operation near Sussex, N.B.

The move is expected to come to ss in the loss of 420 to 430 jobs.

Mark Fracchia, the president of PCS Potash and a de rted general manager for the New Brunswick mine, told a news conference that the verdict to suspend operations at the mine was “extremely difficult.”

“This is just a terribly sad day for all of us. Most of all to the people who have given us so many years of loyal employ, for the community of Sussex, for the province generally and certainly for all of us at PotashCorp,” Fracchia advised reporters.

“We had high hopes for Picadilly and my heart goes out to all the people who must worked so very hard for so long in building and operating the mine.”

The administrative said the New Brunswick mine was the most expensive of its operations because of the geology in the charge.

He said the decision had more to do with global market forces and he maintained there was little the provincial government could have done to plagiarize the corporation.

Sussex Mayor Marc Thorne said he was in “disbelief” when he heard with the corporation’s decision to suspend mine operations.

“It is just heartbreaking to consider this news today,” Thorne said.

The mayor about he’s unsure how the community will fill the economic hole.

‘All our high- ying positions in the community are gone as of this morning.’
Deon Alcock, contractor in Sussex

“The farm outs have been well- ying jobs and quite frankly I don’t see how they can be replaced,” he chance.

Deon Alcock, an independent contractor worker in the area, said the word took people in the area by surprise.

“All our high- ying jobs in the community are go to pieced as of this morning,” he said.

“I think they are in the same small craft as everybody else. They are surprised and thinking about other variants. But right now as we sit, there isn’t many alternatives for anything in New Brunswick or Alberta.”

RAW: Sussex proceeds to mine news2:02

‘Devastating’ im ct on Sussex

Progressive Conservative MLA Bruce Northrup, who outlines the communities surrounding the potash mine, said the news is “devastating” for the tract.

“The local economy depends upon it, whether it is car dealerships, or Tim Hortons or shopping at the mall. It is surely going to affect the area for sure,” Northrup said on Tuesday.

The body said a core crew of about 35 will be kept on at Picadilly for care and living of the operation.

Sussex Mayor Marc Thorne

Sussex Mayor Marc Thorne said PotashCorp.’s verdict to suspend operations at the local mine is ‘heartbreaking.’ (CBC)

The local MLA pronounced he hopes if the potash market rebounds, the mine could reopen.

Northrup familiar the suspension of operations at the potash mine to take a shot at the moratorium of shale gas that was exact a saddled by Premier Brian Gallant’s government.

“The Liberals, the four years we were in administration, they said we put all our eggs into one basket. There are no eggs in the basket there above-board now. The eggs are all gone,” he said.

“They mismanaged the energy and resource sector to the remind emphasize where there are no eggs in the basket. I’m demanding that Premier Hero and the energy minister get involved in this directly and at least give them … a certain source of natural gas for the potash mine.”

PotashCorp’s Fracchia said the shale gas waiting-period “really had no bearing” on the decision.

New Brunswick MP Dominic LeBlanc said the federal command must step up to help the hundreds of laid-off workers at the potash extract.

“We are certainly open to finding the best way quickly to help these tradesmen. Our government is committed to an agenda of aggressive economic development and investing in all cordials of things that will create jobs,” LeBlanc told.

“It is exactly this kind of time where the people of New Brunswick should see the oversight of Canada suit up and step up to help and that is exactly what we’re accepted to do.”

The federal cabinet minister said there are no easy replacements for the towering wages and long-term employment that the mine offered.

LeBlanc explained the short-term measures may be limited to providing employment insurance and helping with work out.

RAW: Federal reaction to Sussex mine suspension4:54

Capital savings for Potash

The rty said more than 100 open positions in its Saskatchewan men will be available to New Brunswick employees, along with relocation aid.

The com ny said the suspension of its New Brunswick operation will allow it to:

  • Promote production at lower-cost operations.
  • Save money on capital expenditures.
  • Uphold long-term flexibility.
  • Preserve com ny jobs over the long compromise concerning.

“We expect to increase our competitiveness and reduce cost of goods sold by $40 [million]-$50 million, which inclination be offset by severance and transition costs.

PotashCorp says the suspension force also eliminate $50 million in capital spending this year and another $135 million in 2017-18.

The com ny’s worldwide customers who were historically served by the New Brunswick operation will now be served from Saskatchewan from stem to stern Canpotex.

PotashCorp’s storage and loading facilities at the port in Saint John wishes be made available to Canpotex.

The annual cost of care and maintenance at the Picadilly read is estimated at $20 million in 2016 and $15 million in subsequent years.

The followers said if it ever decides to resume production in New Brunswick, it will fasten on about one year to get the mine back in operation.

New Brunswick employees who do not cadaver at Picadilly or choose not to relocate to Saskatchewan will be given severance and support ckages.

PotashCorp said it will establish a $5-million fund to:

  • Resist employees with job transition assistance, including skills training and teaching support.
  • Provide financial support to local business.
  • Support shire charities.

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