Nutrien Ltd. (“Nutrien”) announced today that following a strategic review of the company’s potash portfolio, it has decided to permanently close its New Brunswick potash facility and will record a US$1.8 billion non-cash impairment in the third-quarter of 2018. The facility was placed in care and maintenance in early 2016 and has not produced potash since that time.
The decision to close the New Brunswick potash facility reflects Nutrien’s ability to increase potash production in Saskatchewan at a significantly lower operating and capital cost than resuming production in New Brunswick.
The impairment is non-cash and has no impact on Nutrien’s previously announced financial guidance or future global potash sales. Nutrien remains positive on the long-term fundamentals for potash and the opportunity to ramp up production from its low-cost Saskatchewan mines to meet growth in global demand.