The mine, in Boulby, plans to end 220 jobs and shed 140 contractors from a total of more than 1,000.
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Cleveland Potash is Europe’s deepest potash mine and produces and supplies potash fertilisers for agriculture and industry. “It is disastrous news for the workforce, their families and the regional economy”.
The company said it would spend up to £40m at Boulby to increase production of Polysulphate, which it produces exclusively, from 200,000 tonnes this year to 1m tonnes in 2020.
He said: “In recent months we encountered geological problems which have affected previously high-yielding areas of the mine”.
Peter Smith, executive vice president for potash at ICL, said: “We understand that proposals for staffing reductions will cause concerns for employees and their families, as well as the wider community in east Cleveland”. In addition, our exploration programme, validated by independent consultants, confirmed further geological difficulties, which means that we have only a very limited level of economically feasible potash reserves.
Mr Smith said: “The reality of our potash reserves running out by 2018 means that we must develop a new business strategy if we are to continue mining at Boulby”.
He added, “We also made the decision to expedite our transition from potash to Polysulphate at our ICL United Kingdom facility due to the latter’s major potential and lower production costs, as well as our depleting economical reserves of potash at the United Kingdom mine, illustrates our sharp focus on evolving our global business to meet the challenges confronting us and to take advantage of market opportunities”. It might also build a granulation plant at the site.
“Once the move to Polyhalite production occurs, ICL United Kingdom will remain a significant employer, but it is unlikely to be at the same level as in the past”. “We look forward to benefiting from our strategic progress in future quarters, including our acquisition activity and groundbreaking R&D efforts to create new markets for the minerals which we have access to, such as our new range of food additives based on whey proteins and our bromine-based energy storage battery, while ever mindful of the need to achieve maximal operating efficiency in order to maximize returns for our shareholders”.
Middlesbrough South and East Cleveland Labour MP Tom Blenkinsop described it as “devastating news”.
“We are meeting the company tomorrow to ask for the rationale for the job losses which will affect miners, process workers and engineering staff”.
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Today’s announcement is another blow to a region which has already been hit by large job cuts, including the loss of 2,200 jobs at SSI steelworks in Redcar.
