COLONSAY — Mosaic has announced that it will temporarily close its Colonsay potash mine.
The fertilizer giant told the Canadian Press it has issued 395 layoff notices to hourly workers as it indefinitely idles the Colonsay mine, but expects 52 of those workers to stay on to keep the operation on standby in case market conditions improve.
In a media release discussing its second quarter results, the company said it will use production from its Esterhazy K3 potash project, which has cheaper production costs than the Colonsay mine, and inventories to meet its customers’ demand.
Jim Gray, Colonsay’s mayor, said he doesn’t agree with the decision to close the mine, but there is little he has the power to do about it.
He said between the Mosaic mine and Nutrien Allan Potash, which is still in operation, the mining industry is a significant source of employment for the town.
“The people with young kids are going to suffer the most because you need x amount of dollars throughout a household, and not having work doesn’t work too well for those people,” Gray said.
He said in addition to employment, Mosaic contributed money to the town – which will no longer be available.
“They make sure the town does well because that is where the potash mine is,” Gray said. “If we need something to put on something, say for the swimming pool or that, the mine donates money to that. If they’re not open for business we’re not getting that, are we?”
He stated that the mine not being in operation will also have a negative influence on tax dollars.
“This doesn’t just affect the people who work there, it affects everything because my taxes and that more than likely won’t come in like they have if they would have been working and I can’t do nothing about that. I can’t tell the mine to go back to work because they’re a step ahead of me.”
He said he hopes Mosaic fixes any problems that they are having with the mine, so that residents can return to work.
More to come...
