CF Industries to Sell Phosphate Business to Mosaic for $1.4 Billion

Companies Enter Into Ammonia Supply Agreements for Donaldsonville and Trinidad Production
DEERFIELD, Ill.--(BUSINESS WIRE)--Oct. 28, 2013-- CF Industries Holdings, Inc. (NYSE:CF) (“CF Industries” or “the Company”) today announced that it has entered into a set of strategic agreements with the Mosaic Company (NYSE:MOS). The agreements include: a definitive agreement to sell the entirety of CF Industries’ phosphate mining and manufacturing business to Mosaic for cash consideration of $1.4 billion, subject to adjustment; a long-term agreement under which the Company will supply Mosaic with between 600,000 and 800,000 tons of ammonia per year from its Donaldsonville, Louisiana nitrogen complex beginning no later than 2017; and an agreement to provide ammonia to Mosaic from the Company’s Point Lisas Nitrogen Ltd. (PLNL) joint venture beginning at the close of the phosphate sale.
“This is a set of agreements with significant strategic value to both CF Industries and Mosaic,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “The sale of our phosphate operations represents good value for our shareholders and the full set of transactions enables us to sharpen the strategic focus on our nitrogen business.”
Phosphate Business Sale
The phosphate sale includes: the Hardee County Phosphate Rock Mine; the Plant City Phosphate Complex; an ammonia terminal, phosphate warehouse and dock at the Port of Tampa; and the site of the former Bartow Phosphate Complex. In addition, Mosaic is assuming liabilities related to the phosphate business, including responsibility for closure, long-term maintenance and monitoring of the phosphogypsum stacks at the Plant City and Bartow complexes. CF Industries is also transferring to Mosaic the value of its asset retirement obligation trust and escrow funds totaling approximately $200 million.
Donaldsonville Ammonia Agreement
Under the long-term ammonia supply agreement, beginning no later than 2017 CF Industries will supply between 600,000 and 800,000 tons of ammonia per year for up to 15 years from its Donaldsonville nitrogen complex for Mosaic’s use in phosphate production. The ammonia price will be based on the cost of natural gas delivered to Donaldsonville. “This agreement strengthens our confidence in the return we expect to generate from our Donaldsonville capacity expansion by providing a steady base demand for ammonia at a price that insulates us from movements in natural gas costs,” stated Wilson.
Trinidad Ammonia Agreement
Following the close of the sale of the phosphate segment, CF Industries will supply its share of the ammonia produced by the Company’s 50% owned PLNL ammonia production facility in the Republic of Trinidad and Tobago to Mosaic for use in phosphate production. Pricing under this supply agreement will be similar to that in the existing agreement under which the Company purchases ammonia from PLNL.
Other Information
The phosphate sale transaction is subject to customary closing conditions and regulatory clearances, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act and approval from the applicable governmental agencies under CF's consent decree with respect to certain environmental matters related to the phosphate business. The sale is expected to close sometime in 2014. Both companies’ boards of directors have approved the transaction. The Donaldsonville ammonia agreement is not conditional on the phosphate sale transaction and will go into effect beginning no later than 2017. The Trinidad ammonia agreement is conditional on and goes into effect at the closing of the phosphate sale transaction.

Coromandel, GSFC's JV in Tunisia starts production

Tunisia's Groupe Chimique Tunisien (GCT) and Compagnie Des Phosphat De Gafsa (CPG), the entities belonging to Tunisian government own majority state in the company.
The first shipment is expected to reach Coromandel's facility in Kakinada, Andhra Pradesh by this month-end, it said.
Coromandel International has made a strategic investment in TIFERT aimed at securing uninterrupted supply of phosphoric acid for the company's operations. The Company and GSFC have entered into an agreement with TIFERT to import the entire production of phosphoric acid at the Skhira plant on a long- term basis. CIL and GSFC hold 15 per cent state each in this USD 498 million project with balance 70 per cent being held by GCT and CPG. The Plant which was scheduled to be commissioned in 2011 was delayed due to some internal developments in Tunisia. However, the project is now operational and running near to its full capacity, it said. Kapil Mehan, Managing Director of Coromandel said India would get much needed Phosphatic fertilisers to further improve its food security and the project will go a long way to ensure smooth functioning of the company's recently commissioned fertiliser Plant (C Train) in Kakinada. CIL shares were quoting at Rs 179.95 on the BSE during afternoon trade.

Anglo American earmarks US$1.33bn for Goiás state's niobium, phosphate operations

By Frederico Barbosa - Friday, July 5, 2013 Multinational resource group Anglo American (LSE: AAL) will invest US$1.33bn in the production of niobium and phosphate at the industrial units it holds in Brazil's Goias and Sao Paulo states...(see at http://www.bnamericas.com/news/mining/anglo-american-earmarks-us133bn-for-goias-states-niobium-phosphate-operations)