20080868 Ver 2_Sun Journal - PCS eliminates jobs_20090413

Citing permit delays, PCS eliminates jobs
Subject: Citing permit delays, PCS eliminates jobs
From: Susan Massengale <[e-mail]>
Date: Mon, 13 Apr 2009 12:04:38 -0400
To: DWQ Clips <[e-mail]>
From the New Bern Sun Journal
Citing permit delays, PCS eliminates jobs
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April 10, 2009 - 8:21 PM
Nikie Mayo <mailto:[e-mail]>
Sun Journal
AURORA- PCS Phosphate, the Aurora mining company that employs 40 percent of its work
force from Craven and Pamlico counties, announced Friday that it would eliminate some
jobs and reassign some workers because of permitting delays that affect the company's
operations.
On April 20, the company will idle one of its two bucket wheel excavators, a decision
that will affect 24 positions. Twelve PCS employees will be reassigned to other parts of
the site and 12 contractors' positions will be eliminated, according to a company
statement issued on Good Friday, when the plant was closed.
"Our mining operations are quickly approaching the end of our existing permit boundary,"
Steve Beckel, general manager of the plant, said in a prepared statement. "We began the
permitting process more than eight years ago in hopes of avoiding this situation."
The Beaufort County plant employs 1,100 workers, 90 percent of whom are natives of the
region, according to company statistics.
An internal memo dated Thursday told Aurora workers about the layoffs and said regulatory
issues played a part in the process.
"Mining Operations is quickly approaching the end of the existing boundary," the memo
said. "The U.S. Environmental Protection Agency recently requested that the Assistant
Secretary of the Army review the U.S. Army Corps of Engineers' decision to issue the
necessary wetlands permit that will allow the company to continue mining. This request
will result in additional delays in the mine-continuation permitting process.
"As always, we remind everyone to stay focused on your safety and the safety of your
co-workers."
Media inquires were referred to Ross Smith, the environmental-affairs manager for PCS.
"After more than eight years in this permitting process, EPA has proposed yet another
boundary change, which represents a significant reduction in potential minable area, adds
considerable costs and will cause further delays," he said.
Reached late Friday, leaders in both Craven and Beaufort counties said a layoff of any
size is hard to handle, particularly now.
"We're obviously disappointed," said Craven County Manager. Harold Blizzard. "We hate for
anybody to be losing their job, and it's especially bad when you look at the shape the
economy is already in."
Jim Davis, Craven County's chief economic developer, said the layoffs will affect far
more than the two dozen people that are directly impacted.
"Anytime there's a layoff, it's not just a person, it's a family," Davis said. "And it's
not only a family affected, but the retail that family would spend its money on. It's an
impact that isn't confined to one place. It affects a region."
There is one place that will be left "desperate" if permit delays lead to larger layoffs,
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Citing permit delays, PCS eliminates jobs
Beaufort County Manager Paul Spruill said. PCS Phosphate accounts for 18 percent of
Beaufort County's tax base.
"There is no economic outcome for Beaufort County that would be worse than PCS
Phosphate's inability to get this permit," Spruill said. "It is the largest industrial
employer in (Senate leader) Marc Basnight's senatorial district, and everything that
happens at PCS has a ripple effect in Beaufort, Craven and Pamlico counties and, to a
lesser extent, Washington and Pitt counties."
PCS Phosphate is a division of Potash Corporation of Saskatchewan Inc., a Canadian
company that produces fertilizer, industrial and animal-feed products. About three months
ago, Potash announced that it would slow down production of some phosphate-derived
products at the Aurora plant, but attributed that decision to the troubled economy and
not to permit delays.
Plant manager Beckel called the layoff move "a very difficult decision that impacts
employees and contractors who have performed well."
"In an attempt to avoid additional negative impacts, we continue to diligently work with
the appropriate state and federal officials, with the goal of ensuring all permits and
authorizations are issued as soon as possible," he said.
Nikie Mayo can be reached at [phone] or [e-mail]
<mailto:[e-mail]>.
E-mail correspondence to and from this address may be subject to the North Carolina
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