Vale Puts Kronau Potash Mine Development on Hold

The Globe and Mail reported that Vale SA (NYSE:VALE) announced that it will put development of the Kronau potash mine in Saskatchewan on hold.
As quoted in the market news:

Brazilian miner Vale SA, hurt by the global commodities slump, said it will close its nickel smelting and refining operations in Manitoba in 2018, and put development of a potash mine in Saskatchewan on hold.

Meanwhile, Vale’s potash unit put the long-awaited potash mine at Kronau, Sask. on hold. The Brazilian mining company announced the decision to suspend work on the mine in a public letter to the local community.

Vale says the recent feasibility study still shows a compelling case for a mine in Kronau someday, but market conditions make it difficult to finance the project right now.

Matthew Wood, senior project leader at Vale, says there just isn’t an opportunity to start any new construction next year.

The $3.5 billion mining project was projected to create 2,000 construction jobs and 350 permanent jobs.

Click here to read the full Globe and Mail report.