Could the shuttered N.B. potash mine reopen? Premier says yes, company says no

Ukraine war could impact shuttered N.B. mine The war in Ukraine could have an impact on a shuttered potash mine in New Brunswick. Laura Brown explains.

A global demand for fertilizer that started before the war in Ukraine, but has worsened since, is kick-starting a years-long debate as to whether a shuttered potash mine near Sussex, N.B., could reopen.

The mine, owned by Nutrien, ceased operations in 2016 after the company said a weakened fertilizer market forced them to focus on their operations in Saskatchewan.

But now that the market is stronger, some -- including New Brunswick Premier Blaine Higgs -- are asking why potash can’t be sourced from New Brunswick yet again.

“It is a possibility. I’ve had discussions as of about three weeks ago with the CEO of Nutrien. They’re obviously watching the market closely and what impact the war continues to have on potash availability,” he said.

“And they’re looking at the mine, what it would take to reopen it.”

Higgs said the company is investigating whether they can shift more supply from North America or other NATO allies, and away from Russia -- or if the demand is enough to reopen the Picadilly mine.

He believes higher fuel and transportation costs could be in New Brunswick’s favour, as the location of the mine is close to the Port of Saint John.

“They’re assessing what the operation would be here. They’re looking at how much capacity they have currently in Saskatchewan … I’m optimistic but there isn’t anything conclusive. We have a stranded asset there that’s sitting in the ground and I would like it very much to be opened and I believe that Nutrien is taking that seriously and I don’t want to see it sit there,” Higgs said.

But in a statement, Nutrien repeated it has no plans to restart potash operations in New Brunswick, saying it intends to increase volume at its “six low-cost potash mine sites across Saskatchewan.”

“In utilizing our mine network in Saskatchewan for additional capacity in 2022, we have no plans at this time to expand our New Brunswick mine. We’re proud to be a member of the Sussex community and take a long-term view to our operations,” the company said.

Nutrien said the province has extended its existing contract to continue supplying road salt out of its New Brunswick mine.

But Higgs maintains he’s still in contact with the company.

“I guess, obviously, if it doesn’t come into play with them maybe it would be an opportunity that they would look at it could come into play for somebody else. So I would just like to see the mine reopened,” he said.

Richard Lively has worked in the potash industry for almost 40 years. He started a social media site to push the conversation of restarting potash production forward.

“It’s definitely a money-making proposition,” he said.

“All the jobs that were lost when the mine shut down, I mean, there was more than 400 jobs – there were spin-off jobs probably upwards of a thousand jobs. We were thriving here with the good wages, the economy and the royalties.”

The National Farmers Union in New Brunswick says there is concern among farmers – specifically about accessing fertilizer.

“I think we are going to see further increases and difficulties in accessing some fertilizer products,” said executive director Suzanne Fournier.

“They do come from the area of conflict right now, that we mostly buy in New Brunswick.”

But Fournier says the union wouldn’t be interested in seeing the mine reopen, rather turn to alternative options that keep the climate in the forefront.