“By optimizing our production, we expect to increase our competitiveness and reduce cost of goods sold by $40-$50 million in 2016, although this will be partially offset by severance and transition costs,” PotashCorp President and CEO Jochen Tilk. said. “The suspension of potash operations at Picadilly will also eliminate significant capital expenditures, including capital of approximately $50 million in 2016 and $135 million in 2017-2018.”

More than 420 miners will lose their jobs as a result of the indefinite suspension. The company said it will retain a core crew of 35 employees to keep the operation in care-and-maintenance mode. More than 100 open positions will be available for New Brunswick employees to join the company’s Saskatchewan operations.

The company said it will also establish a CDN$5 million community investment fund. In addition to the core crew of workers who will continue to be employed for care and maintenance, the company anticipates that up to 100 employees will remain in place through a transitional period of four months after the shutdown, which was to take effect immediately. PotashCorp said environmental remediation work and careand- maintenance at Cassidy Lake will continue as originally planned, as will decommissioning at Penobsquis.