140 jobs to be cut at Boulby potash mine

Around 140 jobs are set to be cut at Boulby potash mine in North Yorkshire.

ICL UK, a global manufacturer of essential minerals, has said that the job cuts will be made once the consultation with the trade union is completed.

The company also announced that it plans to focus on the production of Polysulphate and has launched a bid to the North York Moors Park Authority for planning permission to extend on the mine for an additional 40 years.

As ICL’s attention turns to Polysulphate production, mining the remaining reserves of potash will occur at a significantly smaller rate.

Reacting to the news, Councillor David Walsh, Deputy Leader for Redcar and Cleveland Borough Council, said: “This is extremely sad news and I really feel for everyone who works at the mine, their families and the wider community.”

The company will confirm the number job losses at the end of the year.

Peter Smith, ICL’s executive vice president-potash, said: “When we announced the restructuring of the business last November we made it clear that, given the very limited level of economically feasible potash reserves, we had to move our focus to Polysulphate production.

“That remains the central element of our strategy to safeguard the business and continuing operations at Boulby, with the business remaining a significant employer in the area. With support from ICL, we are working hard to expand the Polysulphate market including a program of developing a range of innovative Polysulphate products.

“In addition, we have identified an opportunity to produce a compacted potash and Polysulphate product marketed as PotashpluS. Developments since November mean that we believe that the right strategy is to bring forward the programme of Polysulphate production. We have seen global potash prices continue to decline.

“In addition, we are having to make operational changes reflecting the limited areas where we can economically mine whilst maintaining our commitment to ensure that we place safety as our top priority.

“This means we need to now set a production level to reflect these factors—in other words a reduced level of Potash mining operations over the next couple of years whilst we build the Polysulphate market. This involves considering the implications for our workforce levels and we are beginning consultation over proposals for a reduction of circa 140 jobs.

“We understand that this will cause concerns for employees, their families and the wider community and we are committed to keeping the numbers affected as low as reasonably possible. No decisions will be finalised until consultation with the trade union has been completed.

“As we explained in November the restructuring, although difficult, is aimed at ensuring that ICL UK has a future as a supplier of world-class products for many years to come, which is underlined by our decision to submit an application to the North York Moors Park Authority to extend our planning approval for a further 40 years.”