Minister of Transport Steven MacKinnon says he has requested a meeting with Nutrien to ‘convince them to change their mind.’Todd Korol/Reuters
Ottawa says it is disappointed with Nutrien’s NTR-T decision to build an up to $1-billion potash export terminal in the United States and is working to convince the Saskatchewan-based fertilizer giant to change course and invest in Canada.
Minister of Transport Steven MacKinnon said Friday he has requested a meeting with Nutrien’s project team to “convince them to change their mind.”
“Saskatchewan potash should be moved out of a Canadian port,” he said at a press conference Friday in Brampton, Ont. “I’m disappointed at this decision, and we’re hoping to persuade the company to change its mind.”
Mr. MacKinnon said he met with Nutrien chief executive officer Ken Seitz on Thursday. He did not offer specifics on what incentives Ottawa will offer the company, but said the federal government is committed to investing in port infrastructure, specifically in Saint John, N.B., and the Port of Vancouver.
On Wednesday, Nutrien announced plans to build an export terminal with capacity for five to six million tonnes of potash a year in Longview, Wash.
Should the investment be finalized, by 2031 the amount of potash mined by Nutrien and sent to overseas markets via U.S. ports will match that of Canadian ports.
In May, Nutrien announced it was considering ports in the Pacific Northwest for the investment. Within Canada, only Vancouver and Prince Rupert fit Nutrien’s criteria: a deep-sea port with rail infrastructure.
Regulations, taxes and approval timelines would influence the company’s decision about whether to choose the U.S. or Canada, Mr. Seitz told The Globe and Mail at the time, offering Ottawa an opportunity to deliver on its promises to invigorate the Canadian economy by attracting investment in resource extraction and critical minerals.
Potash is a critical mineral essential to all major agricultural production worldwide. It is also one of Canada’s key levers when it comes to global trade. Mines in Saskatchewan account for more than 30 per cent of global production, more than any other country.
In October, Prime Minister Mark Carney committed to doubling non-U.S. exports, from around $300-billion to around $600-billion. Potash is Canada’s fifth-largest export, and Nutrien is forecasting global demand to climb from 72 million tonnes annually to 80 million tonnes by the end of the decade. This growth will be driven by fast-growing markets in Asia, including China, India and Japan.
Nutrien assessed options across the Pacific Northwest based on a matrix of 30 criteria, Nutrien’s chief commercial officer Chris Reynolds told The Globe on Wednesday. These criteria included rail rates, freight costs and construction costs.
The 97-year-old Berth 4 at the Longview port consistently “came out on top,” he said.