Mosaic to Sell Brazil Potash Mining Operations to VL Mineracao

The Mosaic Company MOS has agreed to sell Mosaic Potassio Mineracao Ltda (MPM) —operator of the Taquari-Vassouras potash mine in Rosário do Catete, Sergipe, Brazil — to VL Mineracao Ltda. Under the deal, VL Mineracao will pay up to $27 million in cash, including $12 million at closing, $10 million one year later and $5 million over the next six years. The buyer will also take on about $22 million in asset retirement obligations.The sale is subject to approval from Brazil’s Administrative Council for Economic Defense (CADE) and other standard closing requirements, with completion expected by year-end 2025. Starting in the third quarter, Mosaic will classify the asset as “held for sale” and anticipates a book loss of $50–$70 million from the transaction.Mosaic, which is among the prominent players in the fertilizer space along with Nutrien Ltd. NTR, CF Industries Inc. CF and Interpid Potash, Inc. IPI, said that operations at the Taquari mine require capital inputs of more than $25 million to ensure sustained viability. Mosaic feels that the capital needed to continue owning and operating Taquari could be better used elsewhere within the firm. VL Mineracao is committed to investing in Taquari operations to benefit the local economy, employees and community.For full-year 2025, Mosaic expects phosphate production volumes to range between 6.9 million and 7.2 million tons, while potash production is projected at 9.3 million to 9.5 million tons. Mosaic Fertilizantes sales volumes are anticipated to be at the bottom end of the 10-10.8 million ton range.Another prominent fertilizer maker, Nutrien, projects retail adjusted EBITDA of $1.65 to $1.85 billion for 2025, reflecting expectations for stronger North American crop nutrient and crop protection sales in the second half compared to 2024, and better moisture conditions in Australia and continued recovery in Brazil. Per CF Industries, the global nitrogen supply-demand balance is expected to remain favorable. This is driven by strong demand through the end of 2025, especially from Brazil and India. Brazil is projected to import more than 5 million metric tons of urea, supported by high corn planting, while India’s urea stocks are about 35% lower than last year, prompting frequent tenders. At the same time, global inventories remain below average, and supply is constrained due to natural gas shortages in Egypt and Trinidad and high gas prices in Europe. Interpid Potash remains focused on strong operational and project execution. Per IPI, the potash market continues to experience pricing support aided by strong underlying fundamentals.  See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report The Mosaic Company (MOS): Free Stock Analysis Report Intrepid Potash, Inc (IPI): Free Stock Analysis Report Nutrien Ltd. (NTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks