Mosaic sells Brazilian phosphate asset in $125 million deal

The Mosaic Company, a leading global fertilizer producer, has entered into an agreement to sell its phosphate mine and tailings dams in Patos de Minas, Minas Gerais, Brazil, to Fosfatados Centro. The deal, valued at $125 million, will be paid in cash over six years.

The transaction is part of Mosaic’s broader strategy to optimize its asset portfolio by divesting non-core assets and reallocating capital to higher-return opportunities. The sale is subject to regulatory approvals, including clearance from Brazil’s Administrative Council for Economic Defense (CADE), and other customary conditions.

Karen Swager, Mosaic’s Executive Vice President of Operations, stated that the agreement aligns with the company’s strategic goals. She highlighted Mosaic’s confidence in Fosfatados Centro’s ability to maximize the value of the Patos de Minas asset, while expressing gratitude to employees who maintained the site.

Fosfatados Centro, a Brazilian company, sees the acquisition as a critical step toward strengthening the country’s fertilizer supply chain.

Mosaic Fertilizantes, the São Paulo-based subsidiary of Mosaic, oversees the company’s extensive South American operations, including 26 facilities across Brazil, Paraguay, and Peru. These assets encompass production sites, blending facilities, and infrastructure capable of blending up to 8.6 million tonnes annually.

The decision comes amid changing market dynamics, with global potash prices stabilizing after disruptions caused by the Russia-Ukraine conflict. Increased shipments from major producers like Russia and Belarus to Asia and South America have contributed to the market’s recovery, prompting Mosaic to refocus its investments.