Mosaic Ups Potash Growth
April 9, 2008 The Mosaic Co. is expanding its plans even further to provide more potash for your growers.
Mosaic’s newest long-term potash capacity expansion plan will be in Saskatchewan, Canada, in response to continuing robust global demand for potash. The combination of this expansion and those announced in May 2007 is expected to increase Mosaic’s annual capacity by approximately 5.1 million metric tonnes at an estimated average capital cost that is significantly lower than greenfield projects.
Once all of the expansion projects are completed, Mosaic’s total annual capacity will be approximately 15.5 million tonnes — enough for Mosaic to continue as one of the premier potash companies in the world. The expansions are projected to occur over the next twelve years, with the first expansion production coming on line in 2009. Some of the expansions are already underway while others are in the planning and approval stages.
In addition to these expansions, approximately 1.3 million tonnes of annual capacity will revert to Mosaic within the next few years after a third-party tolling agreement at Esterhazy expires.
"We believe the global demand and supply fundamentals support this growth in our capacity and will allow us to fulfill our growing customer needs," says Jim Prokopanko, Mosaic’s president and CEO. "We are positioned to bring on what we believe is the lowest cost incremental capacity in the industry while maintaining the flexibility to moderate the timing of these expansions as demand materializes."
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