Commodities

Nutrien's potash earnings to take a hit on mine shutdowns

Credit: REUTERS/STRINGER

Fertilizer producer Nutrien Ltd said on Wednesday it would face a $100-$150 million reduction in its annual potash EBITDA as a result of inventory shutdowns at three potash mines due to a short-term slowdown in global potash markets.

Sept 11 (Reuters) - Fertilizer producer Nutrien Ltd NTR.TO said on Wednesday it would face a $100-$150 million reduction in its annual potash EBITDA as a result of inventory shutdowns at three potash mines due to a short-term slowdown in global potash markets.

The company said it planned eight-week inventory shutdowns at its Allan, Lanigan and Vanscoy potash mines in the fourth quarter, adding it would reduce potash production by about 700,000 tonnes.

"Despite the current short-term market conditions, we remain positive on potash demand for 2020, as well as the medium to long-term potash fundamentals," Nutrien said in a statement.

Nutrien lowered its 2019 potash sales volume forecast in July, hurt by the China-U.S. trade war and lower demand from India.

(Reporting by Sathvik N in Bengaluru; editing by Darren Schuettler)

((Sathvik.N@thomsonreuters.com; +1-646-223-8780, outside N.America, +91-80-6749-2783;))

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