Northern Echo sees figures showing where potash company is looking to make job changes

Nearly 80 underground staff have been earmarked for redundancy by ICL UK.

The figures, seen in a confidential document by The Northern Echo, show the firm is looking at shedding about 60 mine face and infrastructure staff, as well as engineers and overseers.

The company, based at Boulby, east Cleveland, last month revealed 140 jobs were at risk as it adapts to shock tests showing traditional potash fertiliser stocks are close to exhaustion.

Affected workers are expected to leave by the end of the year.

Bosses declined to comment on the latest numbers but previously said the changes would give the business its best possible chance of long-term prosperity.

They are now attempting to ward off the impact of lower potash reserves by restructuring operations to ramp up work on the multi-nutrient fertiliser polyhalite, which it markets as polysulphate.

They are also bidding for planning permission to extend the mine’s working life by 40 years.

According to the figures, which The Northern Echo understands are subject to change, jobs on the surface, including administration and fabrication will also be affected.

However, officials have set a small number of mine jobs they say need to be created for future operations, such as electrical and supervisory roles.

Around 350 people, made up of ICL staff and contractors, left the business in previous cuts owing to the business’ changes.

The latest reduction is expected to leave about 650 workers on the site, meaning it will remain east Cleveland’s largest employer.

Speaking exclusively to The Northern Echo last month, Peter Smith, ICL’s potash executive vice president, said bosses took no satisfaction from axing staff but said falling potash prices and the need to hasten polysulphate’s arrival was paramount.

He said: “This is not a decision we have taken lightly.

“We understand this will cause concern for employees, their families and the wider community but it is aimed at ensuring ICL has a future.

“(The falling potash price) places significant pressure economically but we are still committed to the future and believe very strongly in polysulphate.

“We are genuine about trying to create a future but we are businessmen and have to do our jobs.

“It’s a hard pill for people to swallow and I genuinely feel for them.

“But, if we stick to our guns, we will be successful and someone’s kids or grandkids will hopefully reap the rewards.”

Mr Smith said ICL, known locally as Cleveland Potash, was determined over its long-term future, revealing it is targeting premium global markets.

He confirmed the firm is working with potential customers across Asia, the US and South America on new fertilisers and said the venture will provide fresh stimulus away from its traditional potash stock.

He added ICL, which is building a plant to process polysulphate on a larger scale, has ambitions of extracting and handling a million tonnes by 2020 and is pursuing new mineral blends to attract customers in at least 40 countries.

He said: “We have to develop demand.

“You have got to sell small quantities to prove it works and you need multiple growing seasons for people to show some confidence.

“You also need the simple things like word of mouth.

“We have made a lot of progress and we think we can ramp it up to one million tonnes.

“If we can do it faster we will.”

Mr Smith also revealed ICL hopes to take advantage of “boutique” areas.

He added: “If you can create a little product that has a speciality in a certain crop and if that crop takes off, that might be one we create.

“Boutique fertilisers can command premium prices.

“We have got to be smart about this; if we just try to produce commodity we are going to do it harder.”

In a further twist, ICL’s global operations have been hit by the news chief executive, Stefan Borgas, has announced his resignation.

Mr Borgas said he wants to leave the Israel-headquartered company to take on a new challenge in Europe.

Bosses are now searching for a replacement.