B.C port strike causes Sask. mine to cut production
A port strike in British Columbia is affecting the world’s largest potash producer and Saskatchewan is feeling the impact.
Nutrien LTD announced on Tuesday that it has reduced production at its Cory potash mine.
The Saskatoon based company said it is expecting core earnings to fall below its forecast due to offshore sales being delayed through the Canpotex terminal.
A workers strike at the Port of Vancouver has led to the loss of exports through Canpotex’s Neptune terminal. If the disruption is extended, production at Saskatchewan mines could be affected.
Nutrien currently sees 2023 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) below the low end of its forecast of $2.65 billion to $3.35 billion due to global potash prices, the strike in B.C and a terminal outage in Portland.
An updated forecast for the second quarter is planned to be released on Aug. 2.
The issues for Nutrien and other exporting businesses began on July 1, when approximately 7,500 workers from the Port of Vancouver and Port of Prince Rupert walked off the job.
Both ports are critical hubs for the importation of raw materials and exporting natural resources and commodities.
With files from Reuters.
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