Company will combine its salt and potash businesses to make savings and target customers more effectively.
K+S AG Mining News
The firm will be world’s largest potash miner and No.2 nitrogen fertilizer producer.
The Canadian miner, the world’s largest producer of the fertilizer by capacity, expects strong demand to continue this year as North American farmers seek to replenish soil nutrients after record harvests.
The company is also said to be mulling a number of investment projects involving a Chinese chemical company.
Mosaic was charged with fines of more than more than $85,000 after a worker's leg was crushed in a conveyer in February 2014.
The firm anticipates “challenging market fundamentals” in the phosphate-fertilizer market, adding that it is currently assessing the value of some assets, which may lead to writedowns.
Decision to resume operations at the mine was based on Mosaic's expectations that 2017 will be a stronger year for the potash industry.
The 114 miners who were trapped underground following a fire are now home and operations will resume today.
The company also said it expects layoffs resulting from temporary production halts at its Lanigan and Allan mines in early 2017.
The deal, the biggest Canadian merger since CNOOC Ltd. bought Nexen Energy ULC in 2013, would create the world’s largest crop-nutrient supplier, worth about $36 billion.
The combined firm will be the world's largest crop nutrient producer and third largest natural resource company in Canada.
A tie-up could produce a fertilizer giant worth more than $30 billion.
Analysts see the long-awaited deal to sell potash to Chinese buyers as good news for the beleaguered sector, even though the agreed price is dramatically lower than last year’s.
The company has set Jan. 3 as the restart date for the mine, but that may change based on market conditions.
The German fertilizer producer blamed weak prices, production outages and scarce sales for the poor results.
Belarus has said it might cooperate with Uralkali, in the first sign the two sides might work together since the Russian potash producer broke off their business alliance in 2013.
K+S is responsible for the maintenance on the road, and they acknowledge that there are issues.
The Denver-based potash miner is placing its West facility in New Mexico in "care and maintenance” beginning July.
Analysts, companies expect prices to stay below 2015 levels for at least the next two years.
The Legacy mine, located approximately 50km north of the city of Moose Jaw, will be the first new potash operation built in the last 40 years in Saskatchewan.
The agreement with Kansas-based Koch Fertilizer comes as the European firm attempts to fend off a takeover bid from Potash Corp.
The latest offer was unchanged in its value, but included a more formal “business combination agreement,” K+S said
With the deal, Potash Corp. could regain some of its historic dominance over the fertilizer market, since the two companies combined account for 30% of the global potash production.
They argue Potash Corp's main objective is to seize its rival's ambitious Legacy project in southern Saskatchewan and scale it back.
The market may be factoring in a roughly 60% chance that Potash Corp. successfully acquires K+S AG, but one analyst from J.P. Morgan thinks the odds are much lower.