As part of its efforts to reduce costs and redeploy capital, The Mosaic Company has announced it will begin the process of idling and demobilising its Araxá Mining and Chemical Complex and idling related mining activities at the Patrocínio Complex in Brazil.
These actions will result in workforce reductions at both sites. All activities during the idling period will be conducted in full compliance with applicable safety, environmental, and tailings dam regulations.
Additionally, Mosaic plans to pursue the sale of Araxá assets, while at the same time continuing development of the Niobium opportunity at Patrocínio. The company is nearing the completion of technical assessment work related to Niobium at Patrocínio, including sampling and analysis.
Mosaic expects idling of the facilities to reduce annual phosphate production at Mosaic Fertilizantes by approximately 1 million t. The impact on adjusted EBITDA is expected to be limited amid elevated sulfur prices, excluding one-time closure costs. Following the completion of a potential transaction, annual capital expenditure and operating expenses are predicte to decline by approximately US$20 - 30 million and US$70 - 80 million, respectively. The company anticipates recording a pre-tax book impact of US$350 - 400 million in the 1Q26, with US$275 - 300 million for the impairment on assets held for sale and other asset write-offs, and the balance related to severance, contract termination costs, and other idling costs, subject to final accounting determinations.
"We believe idling the facilities and pursing a potential sale is the right path forward." said Bruce Bodine, President and CEO of Mosaic. "This decision reflects Mosaic's continued focus on discipline around capital allocation and returns. We are grateful for our employees at both locations – their years of dedication to safety and contributions to helping the world grow the food it needs have been critical to our success."