Organization cites economic, commercial considerations as fertilizer prices continue to struggle
SASKATOON—Canpotex Ltd., the exporting and offshore marketing wing of three major potash miners, Agrium Inc. Mosaic Co. and Potash Corporation of Saskatchewan Inc., has scrapped plans to build a $775 million West Coast export terminal in Prince Rupert, B.C.
Originally planned for a site just south of the coastal city in central B.C., the organization said the decision to shelve the facility was based on economic and commercial considerations. Canpotex had already invested at least $50 million in the project.
“This decision was made after careful deliberation of Canpotex’s current and anticipated terminal capacity needs, and the options we have to meet those needs” Canpotex’s president and CEO, Ken Seitz, said. “We sincerely appreciate the relationships developed over the years this project was considered. We thank all project stakeholders and community members for their constructive interactions with Canpotex and interest in the project.”
The potash marketer said with export terminals in Vancouver, Saint John, N.B. and Portland, Ore. Canpotex has “sufficient port access” and terminal capacity to meet its needs.
Faced with low fertilizer prices, the Canadian potash market has struggled throughout much of 2015 and 2016. Earlier this year PotashCorp closed its Picadilly, N.B. mine, eliminating 420 jobs.
Following the January announcement, PotashCorp president and CEO, Jochen Tilk, told Reuters the mine closure could force Cantopex to shelve the Prince Rupert project.