A POTASH firm has warned 140 job losses could be followed by further cuts - but says it intends to continue mining for decades to come.

ICL UK, in Boulby, east Cleveland, is paring back numbers as dwindling reserves and falling market prices hinder progress.

The move comes just months after shock tests revealed ICL’s traditional potash fertiliser stocks are close to exhaustion.

Around 350 people, made up of ICL staff and contractors, have already left, and officials previously said they expected a similar number to be released in 2018 when supplies are fully expended.

However, The Northern Echo earlier this year exclusively revealed it had refused to rule out hastening those cuts due to receding stocks, and Peter Smith, potash executive vice president, yesterday (Monday, August 15) confirmed such acceleration is underway.

He said the 140 workers, mainly miners, are expected to leave by the end of the year.

The reduction is expected to leave about 650 staff on the site, meaning ICL retains its position as east Cleveland’s largest employer.

Mr Smith also said the company is committed to Boulby’s long-term future, confirming a vow made to The Northern Echo last year when officials said they would bid for planning permission to extend the site’s life by 40 years.

That increase, said Mr Smith, will help ICL ramp up work on the multi-nutrient fertiliser polyhalite, which the business markets as polysulphate.

He said: “This is not a decision we have taken lightly but we have to take the decisions that are appropriate.

“Our aim is to transfer this business from a purely potash-based operation to a polysulphate operation.

“We believe very strongly in polysulphate (but the falling potash price) places significant pressure economically.

“That has meant we have had to make the next level of changes earlier than anticipated.

“We will run out of potash and will have to re-visit these issues.

“If the climate continues to deteriorate, we will have to continue to respond.”

To mitigate the loss of traditional potash, ICL is switching its attention to polyhalite, which experts say has numerous nutrients needed for strong crop growth.

A new plant to process the mineral is under construction and the firm, known locally as Cleveland Potash, previously said it hopes to be annually mining about a million tonnes by 2020.

Mr Smith said that plan hasn’t wavered, but added caution, saying any progress depends on market take-up.

He also reiterated a previous point that polyhalite work requires less staff.

He added: “We understand this will cause concern for employees, their families and the wider community and we are committed to keeping the numbers as low as reasonably possible.

“But this restructuring, although difficult, is aimed at ensuring ICL has a future.”

Mr Smith added ICL is now in talks with union officials over the changes.

See tomorrow’s free 12-page Jobs & Business supplement for an exclusive interview with Mr Smith on ICL’s plans for the future.