K+S Must Curb German Output in December

Kassel, Germany-based minerals producer K+S has said it will have to suspend production at its sites in Hattorf and Unterbreizbach with immediate effect as the German state of Hesse will no longer permit it to inject a saline solution into the surrounding soil without improving the process.

The Kassel Regional Council is currently working on a transitional solution that would enable a continuation of injection in a few weeks after a detailed technical assessment has been completed. To bridge the gap, plant management and employee representatives have agreed that around 1,750 affected staff will work off overtime and take any remaining vacation days.

The company added that it may have to discharge limited amounts of salt into the Werra river, as permitted, during the interim period. The amounts will depend on water levels and weather conditions.

K+S said it does not anticipate that the interruption of production will have any impact on deliveries to customers except in isolated cases, and it does not expect to have to make any corrections to its forecast group EBIT of €780-830 million for 2015.

The regional council is currently reviewing a new 3D injection plan devised by K+S to dispose of waste from potash production and has said it will make its decision contingent on the projected effects on drinking water reserves.