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Mosaic closes Plant City phosphates manufacturing facility

Published by
World Fertilizer,

The Mosaic Company has announce the closure of its idled Plant City phosphates manufacturing facility in Hillsborough County, Florida, US.

The small team of Mosaic employees currently responsible for care and maintenance activities will remain onsite to manage closure and compliance responsibilities over the next several years.

Operational since 1975, Plant City produced approximately 1.3 million t of finished phosphates in 2017, its last year of operation. The plant was idled in late 2017 because it was one of the higher cost phosphates facilities in Mosaic’s Florida Operations and due to global phosphate market conditions.

“Our decision to close the Plant City phosphate facility reaffirms our commitment to low-cost operation,” said Mosaic President and CEO Joc O’Rourke. “We will continue to meet global demand for high-quality phosphate fertilizers with production from our low-cost facilities in Florida, Louisiana, Brazil and Peru, and through our joint venture in Saudi Arabia.”

During 2Q19, Mosaic expects to recognise a notable non-cash charge of up to US$390 million for the permanent closure of the facility, including asset write-offs and an increase of the asset retirement obligation liability. Annual cash payments to manage the closure of the facility over the next five years are expected to be similar to payments incurred while the plant was idle in 2018. Mosaic will seek to mitigate a portion of closure costs by evaluating innovative approaches to water management and to repurposing part of the facility for productive use.

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