CORY POTASH MINE

Potash Corporation of Saskatchewan Inc. view that the BHP Billiton $130 per share offer is wholly inadequate. The Company believes that the offer fails to reflect both the value of PotashCorp's premier position in a strategically vital industry and the company's future growth prospects.

A spokesman for Potash Corp. (TSX:POT) in Saskatchewan says operations have been stopped at one mine, while managers are doing what maintenance they can at two others after 500 unionized workers went out on strike Thursday, reports the Canadian Press. Bill Johnson, a company spokesman, says they've halted operations at the Cory mine near Saskatoon and are evaluating what their next steps might be. Two other mines, Allan and Patience Lake, are shut down for scheduled maintenance and Johnson says managers are being bused in to do what they can at those sites He says there hasn't been any trouble with picketers trying to stop them. Lee Edwards, the lead negotiator for the United Steelworkers, says no new talks are scheduled, but she adds they're trying to keep the lines of communication open with the company. Johnson notes that Potash Corp. is spending about $6.8 billion on expanding its operations in Canada, but doesn't think the labour disruption will hinder those plans. The company posted second-quarter earnings of $905 million, which is 62 per cent higher than its first-quarter earnings of $566 million.

Announced that unionized employees at its Allan Division, Cory Division and Patience Lake Division potash operations commenced strike action, effective 5:30 p.m. (CST) today. The 487 striking employees are members of United Steelworkers' (USW) Local 7689 at Allan, USW Local 7458 at Cory and USW Local 189 at Patience Lake and are responsible for underground mining operations as well as milling and shipping activities on the surface.