US fertilizer company Mosaic (NYSE: MOS) said on Monday that it has agreed to sell its phosphate mine and tailings dams in Patos de Minas, located in Brazil’s Minas Gerais state, to local company Fosfatados Centro for $125 million in cash over six years.

The deal aligns with Mosaic’s strategy to review and monetize non-core assets while reallocating capital to higher-return investments, the company said. Mosaic, the world’s fourth-largest potash producer, emphasized that the transaction is part of its broader effort to optimize its asset portfolio.

“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.

Mosaic’s South American operations include potash and phosphate facilities across Brazil, Paraguay, and Peru, comprising 26 locations in total. These include 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, 8 toll units, 1 port terminal, and has a blending capacity of 8.6 million tonnes annually.

Mosaic’s move comes as global potash prices have started to fall 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.

Source: MINING.COM – Read More