PotashCorp Announces Operating and Workforce Changes

Listed: TSX, NYSE
Symbol: POT 
SASKATOON, SK, Dec. 3, 2013 /CNW/ - Potash Corporation of Saskatchewan Inc. 
(PotashCorp) announced today that it is taking the difficult but necessary 
step to reduce its workforce in Canada, the United States and Trinidad by 
approximately 18 percent from current levels. 
We expect workforce reductions by region as follows: 

    --  Saskatchewan - approximately 440 people
    --  New Brunswick - approximately 130 people
    --  Florida - approximately 350 people
    --  North Carolina - approximately 85 people
    --  Other US locations and Trinidad -  approximately 40 people

Despite confidence in the long-term drivers of our business, a significant 
portion of fertilizer demand comes from developing markets where growth has 
been less robust than expected. This sluggish environment has been most 
visible in our potash and phosphate businesses, and has contributed to 
challenging market conditions. As a consequence, we must make some difficult 
decisions today to ensure the company continues to be well positioned for the 

Following a comprehensive review of business and operational needs, changes 
were identified to:
    --  Respond to market conditions;
    --  Reduce costs to enhance the global competitive position of the
        company; and
    --  Maintain operational flexibility in potash to meet anticipated
        future demand growth.

The changes are intended to optimize our lowest-cost operations, while 
retaining the ability to respond to expected demand levels and product needs 
of our customers. All three business operating segments (nitrogen, phosphate 
and potash), as well as corporate services, will be impacted by these 

"This is a difficult day for our employees and our company," said PotashCorp 
President and Chief Executive Officer Bill Doyle. "While these are steps we 
must take to run a sustainable business and protect the long-term interests of 
all our stakeholders, these decisions are never easy. We understand the impact 
is not only on our people, but also in the communities where we work and live, 
and PotashCorp will work hard to help those affected through this challenging 

Operating and Workforce Changes


We are reducing our permanent potash workforce by approximately 570 people. 
The majority of these positions will be at our Lanigan and Cory facilities in 
Saskatchewan as well as our New Brunswick operation. Our Patience Lake, SK 
facility and Saskatoon Corporate Headquarters will also be affected.

Operating changes include:
    --  Suspending production at one of our two Lanigan mills by year
        end, while keeping it in a care-and-maintenance mode;
    --  Reducing production at our Cory facility by year end; and
    --  Ceasing production at our Penobsquis, NB facility at the end of
        the first quarter 2014, which will allow us to accelerate
        development activities at our Picadilly mine.

Our Allan and Rocanville facilities in Saskatchewan are not expected to be 

We anticipate our operational capability for 2014, along with our inventory 
position, will provide us the ability to supply more than 10 million tonnes, 
which should provide ample supply cushion. Although staffed to run at reduced 
levels for the foreseeable future, our Lanigan and Cory plans provide the 
flexibility to ramp-up operations as market conditions warrant.

Expansion spending at Rocanville - our lowest-cost operation - will continue 
as previously announced. This project, which is approximately 90 percent 
complete, is expected to further enhance our competitive position and play a 
key role in meeting future customer needs.

Phosphate and Nitrogen

We will be closing the Suwannee River chemical plant in the second half of 
2014 - one of two at our White Springs, FL phosphate facility. This move will 
impact approximately 350 people. The granulation plants at this facility will 
continue to operate.

A loss of capacity at White Springs is expected to be partially offset by 
higher operating rates at our Aurora, NC phosphate facility. We anticipate a 
net loss of approximately 215,000 tonnes of P(2)O(5) annual production within 
our phosphate business beginning in 2015, although product mix optimization 
will result in improved per-tonne gross margin contribution. The impact on 
customers is expected to be minimal due to our product mix flexibility, as 
well as the ability to direct volumes to offshore or domestic markets.

At Aurora, our number of permanent employees will be reduced by approximately 

We will be reducing our workforce at our US and Trinidad nitrogen facilities 
by approximately 20 permanent people. We do not anticipate any change to our 
operational capability.

There will also be workforce reductions at our Northbrook, IL office which 
includes our US Sales and support services for our Nitrogen and Phosphate 


The majority of changes are anticipated to be completed in 2013, although 
certain positions at impacted operations are expected to remain in place 
through a transitional period. Where feasible, affected employees will be 
offered voluntary severance packages prior to any involuntary reductions. 
Additionally, we are committed to providing assistance to all our employees in 
their transition to new opportunities. Severance and assistance programs are 
expected to exceed those that are typically provided in similar situations.

We anticipate the outlined changes will result in lower per-tonne operating 
costs - most notably in our potash and phosphate segments - thereby enhancing 
the competitive position of each nutrient on a global basis. We expect potash 
cost savings of $15-$20 per tonne in 2014 with a targeted reduction of $20-$30 
per tonne by 2016 (from 2013 levels). In phosphate, we anticipate an 
annualized gross margin improvement of approximately $10-$15 per P(2)O(5) 

One-time costs associated with these changes are expected to approximate $70 
million for severance charges. We are currently reviewing the carrying value 
of our affected assets and a write-down, if required, will be incorporated 
into our fourth quarter 2013 results.


"We work in a remarkable and critically important industry - one with a proud 
history and a bright future," said Doyle. "While these are difficult 
decisions, we know that they help ensure our company remains positioned for 
the future and able to grow long-term value for those who depend on our 
sustainability and success."

More information, including a video message and presentation is available at 

PotashCorp is the world's largest crop nutrient company and plays an integral 
role in global food production. The company produces the three essential 
nutrients required to help farmers grow healthier, more abundant crops. With 
global population rising and diets improving in developing countries, these 
nutrients offer a responsible and practical solution to meeting the long-term 
demand for food. PotashCorp is the largest producer, by capacity, of potash 
and third largest producer of nitrogen and phosphate. While agriculture is its 
primary market, the company also produces products for animal nutrition and 
industrial uses. Common shares of Potash Corporation of Saskatchewan Inc. are 
listed on the Toronto Stock Exchange and the New York Stock Exchange.

This release contains forward-looking statements or forward-looking 
information (forward-looking statements). These statements can be identified 
by expressions of belief, expectation or intention, as well as those 
statements that are not historical fact. These statements are based on certain 
factors and assumptions including with respect to: foreign exchange rates, 
expected growth, results of operations, performance, business prospects and 
opportunities and effective tax rates. While the company considers these 
factors and assumptions to be reasonable based on information currently 
available, they may prove to be incorrect. Forward-looking statements are 
subject to risks and uncertainties that are difficult to predict. The results 
or events set forth in forward-looking statements may differ materially from 
actual results or events. Several factors could cause actual results or events 
to differ materially from those expressed in the forward-looking statements, 
including, but not limited to the following: variations from our assumptions 
with respect to foreign exchange rates, expected growth, results of 
operations, performance, business prospects and opportunities, and effective 
tax rates; fluctuations in supply and demand in the fertilizer, sulfur, 
transportation and petrochemical markets; costs and availability of 
transportation and distribution for our raw materials and products, including 
railcars and ocean freight; changes in competitive pressures, including 
pricing pressures; adverse or uncertain economic conditions and changes in 
credit and financial markets; the results of sales contract negotiations 
within major markets; economic and political uncertainty around the world; 
timing and impact of capital expenditures; risks associated with natural gas 
and other hedging activities; changes in capital markets; unexpected or 
adverse weather conditions; changes in currency and exchange rates; unexpected 
geological or environmental conditions, including water inflows; imprecision 
in reserve estimates; adverse developments in new and pending legal 
proceedings or government investigations; acquisitions we may undertake; 
strikes or other forms of work stoppage or slowdowns; rates of return on and 
the risks associated with our investments; changes in, and the effects of, 
government policies and regulations; security risks related to our information 
technology systems; and earnings and the decisions of taxing authorities, 
which could affect our effective tax rates. Additional risks and uncertainties 
can be found in our Form 10-K for the fiscal year ended December 31, 2012 
under the captions "Forward-Looking Statements" and "Item 1A - Risk Factors" 
and in our other filings with the US Securities and Exchange Commission and 
the Canadian provincial securities commissions. Forward-looking statements are 
given only as at the date of this release and the company disclaims any 
obligation to update or revise the forward-looking statements, whether as a 
result of new information, future events or otherwise, except as required by 

SOURCE  Potash Corporation of Saskatchewan Inc. 
Investors Denita Stann Vice President, Investor and Public Relations Phone: 
(306) 933-8521 Fax: (306) 933-8844 Email:ir@potashcorp.com  Media Bill 
Johnson Senior Director, Public Affairs Phone: (306) 933-8849 Fax: (306) 
933-8844 Email:pr@potashcorp.com 
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CO: Potash Corporation of Saskatchewan Inc.
ST: Saskatchewan
-0- Dec/03/2013 11:00 GMT
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