The curtailment is not expected to impact the pace of development at the Esterhazy mine K3 project. The increased curtailment is based on increasing inventories as a result of a short-term slowdown in global potash markets and increased risks of a delay in Chinese contract settlement. If the full amount of the curtailment is realised in lower 4Q19 sales, it would result in a negative impact of approximately US$150 million in adjusted EBITDA.
“While near-term fertilizer markets remain challenging, we continue to expect a very strong application season in Brazil and North America, and a better supply and demand balance in 2020,” said President and CEO, Joc O’Rourke.
The company plans to provide updated market commentary when it reports earnings, after close 4 November 2019. On 6 August, the company provided sensitivity of 2019 adjusted EBITDA for both phosphates and potash price changes.
Read the article online at: https://www.worldfertilizer.com/potash/11102019/mosaic-to-temporarily-curtail-production-at-esterhazy-potash-mine/
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