Mosaic sells potash mining operations to VL Mineração

Upon the closing of the transaction, VL Mineração will pay Mosaic up to US$27 million in cash including US$12 million upon closing, US$10 million one year after closing and US$5 million over six years, and will assume responsibility for approximately US$22 million in asset retirement obligations (ARO). The transaction is subject to obtaining approval by the Brazilian Administrative Council for Economic Defense (CADE) and other customary closing conditions. Mosaic has expected the transaction to close by the end of 2025. Beginning in the 3Q25, Mosaic will record the asset as ‘held for sale’ with an expected book loss of US$50 - US$70 million.

Mosaic's operations at the Taquari mine require capital investments exceeding US$25 million to ensure continued viability. Mosaic has determined that the capital required to continue to own and operate Taquari has more attractive uses elsewhere within the company. VL Mineração has expressed a strong interest in making the necessary investments to extend the Taquari operations to the benefit of the local economy, employees, and the community.

"One of our priorities is to elevate our core business, and one way to do that is by reallocating capital to ensure we're investing where we have the greatest capacity to succeed. This sale advances progress toward that priority – allowing us to focus capital on opportunities where we have a competitive advantage and are expected to generate higher returns," said Bruce Bodine, Mosaic's President and CEO.

"This agreement allows us to contribute to the development of Brazilian agriculture, including maintaining and expanding the domestic potash supply in the fertilizer market, as we are confident the mine will be profitable and efficient under our ownership and operating model," added Daniel Moreira, CEO of VL Holding.

Read the article online at: https://www.worldfertilizer.com/potash/26082025/mosaic-sells-potash-mining-operations-to-vl-minerao/