PotashCorp

Potash Corporation of Saskatchewan Inc.
	File:PotashCorp logo.svg
Company type	Public
Traded as	Template:TSX was; Template:NYSE was
Industry	Materials
Founded	1975
Defunct	December 2017
Fate	Merged with Agrium
Successor	Nutrien
Headquarters	Saskatoon, Saskatchewan, Canada
Key people	Jochen Tilk (CEO)
Products	Potash; Nitrogen; Phosphate
Revenue	IncreaseUS$8.03 Billion (FY 2012)
Operating income	Increase US$3.90 Billion (FY 2012)
Net income	Increase US$2.30 Billion (FY 2012)
Total assets	US$17.47 Billion (2016)
Number of employees	5,703 (2011)
Website	www.potashcorp.com/

The Potash Corporation of Saskatchewan (PotashCorp), headquartered in Saskatoon, Saskatchewan, combined with Calgary-based Agrium to establish Nutrien, finalizing the merger on January 1, 2018.

As the leading global producer of potash and the third-largest supplier of nitrogen and phosphate—essential nutrients for fertilizers—PotashCorp held significant market shares by the close of 2011: approximately 20% of worldwide potash production capacity, 2% of nitrogen output, and 5% of phosphate supply. The company was a co-owner of Canpotex, responsible for managing all potash exports from Saskatchewan, and maintained a joint venture with Sinochem called Sinofert. By late 2013, institutional investors controlled around 60% of PotashCorp’s shares. Notably, in 2007, CEO William Doyle ranked as Canada's top-earning CEO, with compensation totaling $320 million.

History

Founded in 1975 by the government of Saskatchewan, PotashCorp transitioned to a publicly traded entity in 1989 when the government divested its stake, completing the process in 1990.

Crown corporation

The Saskatchewan potash sector originated during the 1950s and 1960s, initially supported by government subsidies but later confronted with overproduction and a global surplus by the late 1960s. To address this, a 1969 emergency strategy introduced production quotas and a price floor; while this benefitted producers, it did not favor government revenues. Following the election of an NDP government in 1971, new regulations including a reserve tax were enacted in 1974, which met opposition from industry players. In response, the provincial government established Potash Corporation of Saskatchewan as a crown corporation in 1975 to exert control over the industry.

Between its inception and the early 1980s, PCS acquired multiple mines throughout Saskatchewan, eventually accounting for roughly 40% of Canadian production. This public ownership model drew criticism from the U.S. government, which accused PCS of monopolistic practices and imposed tariffs on potash imports citing alleged dumping.

Private company

After encountering financial difficulties and accumulating $800 million in debt during the early 1980s, PCS underwent privatization in 1989. Throughout the following decade, PotashCorp expanded its footprint by acquiring several American firms such as Potash Company of America, Florida Favorite Fertilizer, Texasgulf, and Arcadian Corporation, thereby extending its operations across Canada, the United States, Brazil, and the Middle East. By March 2008, surging potash prices had propelled PotashCorp’s market capitalization to nearly C$63 billion, ranking it among Canada's most valuable corporations.

As of 2003, PotashCorp operated six out of eleven potash mines in Canada:

PotashCorp operations, 2003
Name	Type	Capacity (kt)
Patience Lake	Solution	630
Cory SK	Blast	830
Allan SK	Blast	1150
Lanigan SK	Blast	2335
Rocanville SK	Blast	1400
Sussex NB	Blast	479

In August 2010, PotashCorp was subject to an unsolicited takeover attempt from BHP Billiton. The Canadian federal government blocked this bid under the provisions of the Investment Canada Act, determining it did not provide sufficient benefit to Canada; shortly thereafter BHP withdrew its offer.

During October 2013, PotashCorp experienced a significant profit decline—43% lower third-quarter earnings—due to market instability caused by Uralkali’s withdrawal from its partnership with Belaruskali, which raised concerns about falling potash prices. Subsequently in December that year, the company announced workforce reductions affecting over one thousand employees.

Leadership changes occurred in April 2014 when Jochen Tilk took over as CEO from Bill Doyle, marking a strategic shift at the helm.

By January 2016, continued declines in potash pricing coupled with underground structural challenges resulted in the shutdown of PotashCorp’s Sussex NB Piccadilly mine.

Formation of Nutrien through Merger with Agrium

On September 12, 2016, PotashCorp revealed plans to merge with Calgary-based Agrium, subject to regulatory approval. The new organization, named Nutrien and headquartered in Saskatoon, was valued at approximately US$36 billion. This merger positioned Nutrien as the world's largest producer of potash and the second-largest manufacturer of nitrogen fertilizers. Shareholders from PotashCorp owned 52% of the combined company, while Agrium shareholders held the remaining 48%.

During 2016, PotashCorp faced a notable decline in profits, leading to the closure of two less efficient potash mines in Canada. The merger was finalized on January 1, 2018, resulting in the dissolution of both original companies and the unification of their operations under the Nutrien brand.

Criticism

Environmental organizations have opposed a permit issued by the North Carolina Division of Water Quality to PotashCorp’s phosphate mining facility located in Aurora, North Carolina. This permit authorizes expansion despite concerns about potential damage to wetlands and aquatic ecosystems. The approval is contingent on anticipated changes to state regulations that would support the company’s development objectives.

In Penobsquis, residents have filed lawsuits against PotashCorp, alleging harm caused by well depletion, ground subsidence, and pollution linked to current and proposed potash mining activities. This matter is overseen by the New Brunswick Mining Commissioner.

Moreover, a sulfur melting plant project planned for Morehead City, North Carolina, was canceled in 2011 following opposition from the local community.

External links