MINNEAPOLIS — Ceres Global Ag Corp. announced July 8 that it has suspended its previously-announced canola crush project at Northgate, Sask., citing a variety of factors, including but not limited to “inflationary pressures resulting in higher costs than initially projected and shifting macroeconomic conditions.”
“Consistent with the foregoing, Ceres has taken the step of terminating an equipment design and supply contract relating to the project, in order to reduce project-related contract liabilities,” Ceres said. “Termination of this contract and suspension of the project will result in a fourth-quarter impairment charge in relation to certain earlier expenditures made in connection with the project and which will be included when Ceres reports its fourth-quarter and fiscal year-end results later this fall.”
Ceres said it currently expects the impairment will be in the range of $25 million to $30 million.
“Ceres intends to continue to explore avenues to pursue a canola crush project of some form in the future, but there is no guarantee that such a project will come to fruition or would be similar to the previously announced project,” the company said.Ceres firstunveiled plansfor the $350 million integrated canola processing facility in May 2021. At that time, the company said the proposed facility would have the capacity to process 1.1 million tonnes of canola and refine more than 500,000 tonnes of canola oil, for both food and fuel, annually. The facility was expected to be operational by the summer of 2024 and was expected to result in the creation of more than 50 full time jobs in Saskatchewan, which is the largest canola producing province in Canada.