Mosaic sells its Brazil potash mine for $27 million to mitigate market pressures 

Mosaic has agreed to sell its Taquari-Vassouras potash mine in Brazil to VL Mineração for up to $27 million in cash, with the buyer assuming about $22 million in asset retirement obligations.

The transaction, pending approval from Brazil’s Administrative Council for Economic Defense, will be paid in installments: $12 million at closing, $10 million after one year, and $5 million over six years. Mosaic said the mine would require more than $25 million in new capital to remain viable and that the proceeds from the sale could yield better returns if invested elsewhere in its portfolio.

According to the company, VL Mineração has indicated it is prepared to make the investments needed to extend the mine’s operational life.

Mosaic’s South American operations include potash and phosphate facilities in Brazil, Paraguay and Peru. Shares in the New York-listed company rose 2.89% on Wednesday morning, giving it a market capitalization of about $10.1 billion.

The sale comes as Mosaic faces softer fertilizer demand and tariff-related pressures. Shares fell as much as 13% on Wednesday, the steepest drop since May 2022, after the release of second-quarter earnings. The company reported weaker sales volumes, citing the impact of US tariffs on phosphate imports, which have reduced combined phosphate and potash imports by about 20% so far this year.

Mosaic’s executive vice president of commercial, Jenny Wang, said falling corn and soybean prices, coupled with “global trade uncertainty,” have tightened farmers’ nutrient budgets. The company posted an $8 million loss in its phosphate segment for the quarter as planned maintenance projects took longer than expected, further weighing on sales volumes.