Tampa-based fertilizer company Mosaic (NYSE: MOS), the world’s fourth-largest potash producer, said on Monday that it has agreed to sell a phosphate mine and tailings dams in Brazil to local company Fosfatados Centro for US$125 million in cash.
The deal for the Patos de Minas site located in the country’s Minas Gerais state aligns with Mosaic’s strategy to review and monetize non-core assets while reallocating capital to higher-return investments, the company said.
“This agreement represents an important step for the phosphate supply to the Brazilian fertilizer market and demonstrates our commitment to advancing the National Fertilizer Plan,” Rodolfo Galvani Júnior, owner of Fosfatados Centro, said in the statement.
Shares in Mosaic gained 4.9% on Monday morning to US$26.05 in New York, valuing the company at US$8.2 billion. They’ve treaded in a 52-week range of US$23.56 to US$33.44.
Market recovery
Mosaic’s move comes as global potash prices have started to fall and supply levels return to those seen before Russia’s invasion of Ukraine. Top producers Russia and Belarus have circumvented Western sanctions by increasing shipments to Asia and South America, contributing to the market’s recovery.
The company’s South American operations include 26 potash and phosphate facilities across Brazil, Paraguay and Peru. They comprise production and blending facilities, offices and infrastructure.
Its São Paulo-based subsidiary, Mosaic Fertilizantes, manages regional commercial and production facilities, as well as port and storage units. The company operates 11 blending facilities, eight toll units, one port terminal, and has a blending capacity of 8.6 million tonnes annually.
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