The Mosaic Company To Acquire ADM's Brazil And Paraguay Fertilizer Distribution Business

PLYMOUTH, Minn., April 15, 2014 /PRNewswire/ -- The Mosaic Company (NYSE: MOS) signed definitive agreements today with Archer Daniels Midland Company (NYSE: ADM) to acquire its fertilizer distribution business in Brazil and Paraguay for $350 million. The purchase price assumes the delivery of $150 million in working capital at closing. This acquisition is expected to significantly accelerate Mosaic's previously announced growth plans in Brazil as well as replace a substantial amount of planned internal investments in that country. Under the terms of the agreement, Mosaic would acquire four blending and warehousing facilities in Brazil, one in Paraguay and additional warehousing and logistics service capabilities. The acquisition of ADM's fertilizer distribution business would increase Mosaic's annual distribution in the region from approximately four million metric tonnes to about six million metric tonnes of crop nutrients. In addition to the acquisition, Mosaic is in process of completing approximately $100 million in projects including expansion of the company's port terminals, plants and production capabilities. "The addition of ADM's fertilizer distribution business in Brazil and Paraguay facilitates two critical strategic priorities for Mosaic. It enhances our global growth strategy and expands our market access," said Mosaic President and Chief Executive Officer James T. Prokopanko. "This acquisition provides a critical distribution platform in one of the world's fastest growing agricultural regions, and it complements our other recent strategic initiatives, including our joint venture in Saudi Arabia, our recent acquisition of CF Industries' phosphate business and our ongoing potash expansion program." "Acquiring ADM's fertilizer distribution business accelerates our existing growth plans in Brazil and provides access to new customers throughout the country and in Paraguay," said Tobias Grasso, Mosaic's Country Manager in Brazil. "We will gain scale and operating efficiencies through this acquisition, as well as a talented group of employees who will join our team." The parties have also negotiated the terms of five-year fertilizer supply agreements providing for Mosaic to supply ADM's fertilizer needs in Brazil and Paraguay. Mosaic will fund the acquisition with cash from operations. The transaction is not expected to impact Mosaic's shareholder distribution plans. The proposed sale will be contingent on customary regulatory approvals. About The Mosaic Company The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the Company is available at www.mosaicco.com. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the acquisition and assumption of certain related liabilities of the fertilizer distribution business in Brazil and Paraguay of Archer Daniels Midland Company ("ADM") and the fertilizer supply agreements with ADM; the benefits of the transactions with ADM; other proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to risks and uncertainties arising from difficulties with failure to complete the proposed acquisition with ADM, unexpected delays in completion of such transaction, realization of the benefits of the transactions with ADM, including the risks that the acquired assets may not be integrated successfully or that the cost or capital savings from the transactions may not be fully realized or may take longer to realize than expected; customer defaults; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation; the effectiveness of the Company's processes for managing its strategic priorities; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund share repurchases and strategic investments; and other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. SOURCE The Mosaic Company Smartlinks | The Mosaic Company | Agriculture - See more at: http://www.noodls.com/view/3FE1648DA055562D96C9D9283F71C00BD761703E?6783xxx1397581609#sthash.INIVOsRD.dpuf

MbAC starting up in Arraias - Tocantins - Brazil

ITAFOS OPERATIONS UPDATE The Company continues to ramp-up operations and expects to achieve commercial production in Q2 2014. While the global phosphate price environment started to show some strength during the last quarter of 2013, MBAC's revenue and average selling price were impacted by the seasonality of Brazil's planting season and higher than customary inventory levels. Q4 is typically a slow period for fertilizer companies in Brazil operating in this industry. Di-ammonium Phosphate ('DAP') prices (fob Morocco) have increased by approximately 20% since bottoming in November 2013. Triple Super Phosphate ('TSP') prices have also seen a strong increase (approximately 32%) since hitting five-year lows in late 2013. The rising prices are expected to have similar impact on SSP prices in Brazil as 2013 Brazilian fertilizer inventories are depleting. The Company believes that SSP prices should fully benefit from the rising global prices as the fertilizing season progresses. Average selling prices for SSP in 2014 are expected to be consistent with the 2013 average selling price. We anticipate that the cost of production for SSP will be consistent with guidance previously disclosed by the Company.

Petrokimia Gresik to Open East Java Phosphoric Acid Plant in Q2

By ID/Rozi Amrozi on 10:24 am Jan 02, 2014 Category Business, Corporate News Tags: fertilizer, Petrokimia Gresik, phosphoric acid Gresik, East Java. Petrokimia Gresik, a sate-run fertilizer company, plans to open a new phosphoric acid plant in East Java in the second quarter of 2014, a company executive said on Tuesday. “The new phosphoric acid plant, which is a joint venture with [Jordan Phosphate Mines], will be able to contribute to an increase in our revenues in 2014,” said Hidayat Nyakman, the company’s president director. Jordan Phosphate Mines (JMPC) is a mining company based in phosphate-rich Jordan. Phosphoric acid is an essential component in many commercial fertilizers. The $200 million plant, which has been under construction since the end of 2010, is expected to produce 200,000 tons of phosphoric acid per year for use in fertilizers on the domestic and foreign markets. Hidayat said the plant would increase the company’s production capacity and end the need to import raw materials to make fertilizers. Each company is to take a 50 percent stake in the joint venture, as per a January 2010 agreement. Petrokimia Gresik also plans to spend $160 million revamping is preexisting plant so that it too can produce 200,000 tons of phosphoric acid per year, and to expand the plant’s industrial compound to include a sulfuric acid plant with a capacity of 600,000 tons per year and a gypsum purification plant with a similar capacity. “The expansion of this phosphoric acid plant will assure a supply of phosphoric acid and therefore save foreign exchange for the state,” Hidayat said. The company said it required 600,000 tons of phosphoric acid to produce 2.8 million tons of NPK fertilizer a year, while its current phosphoric acid facility only produced one third that amount. Nugrohon Purwanto, Petrokimia Gresik’s commercial director, said that the weakening of the Rupiah had significantly impacted the cost of phosphoric acid imports. “With the operation of the phosphoric acid plant that is a joint venture with JPMC, our efforts to save production costs, which will enhance our competitiveness in the free market in the future, can be improved,” Nugroho said. The plant will require some 770,000 tons of phosphate and 200,000 tons of sulfur a year to meet its production goals. The company also plans to complete an upgrade of its water processing installation in Gunung Sari, Surabaya, Hidayat said, increasing its capacity from 720 cubic meters to 3,800 cubic meters per hour.

Hatch's 3D model of the Simplot Phosphates LLC Rock Springs fertilizer manufacturing facility

Jordan and Indonesia agree to phosphoric acid projects

8:38 AM MDT | July 22, 2013 | Natasha Alperowicz from IHS Chemical Week
Jordan Phosphate Mines Co. (JPMC; Amman) has signed memoranda of understanding with two Indonesian firms to build two separate phosphoric acid projects, each designed to produce 200,000 m.t./year. One of the units will be built in Jordan and the other in Indonesia, according to JPMC. The two projects form part of the company’s strategy to guarantee offtake of phosphate rock from its extensive mining operations in Jordan. JPMC operates in three mining areas in the central and southern parts of Jordan: Al Hassa, Al Abiad, and Eshidiya.

Saudi Arabian Mining Company (Ma'aden) : build a phosphoric acid plant worth 3.5bn riyals.

Contract Awarded for build a phosphoric acid plant. The plant will have a production capacity of 1.5mn tonnes. Contract Value: 3.5bn riyals. Contract Period: 2016 Contractor name : HANWHA ENGINEERING & CONSTRUCTION CO.Jacobs Engineering Group Inc. (NYSE:JEC) announced today it was awarded a contract by Saudi Arabian Mining Company (Ma'aden) to provide a bankable feasibility study/front end engineering design (FEED) for its Umm Wu'al Phosphate Project in the Sirhan-Turaif region, the Kingdom of Saudi Arabia.

Vale sells Fosbrasil stake to Israel Chemicals for $52 mln

Dec 26 (Reuters) - Vale SA , the world's No. 1 iron ore producer, sold a 44.25 percent stake in purified phosphoric acid producer Fosbrasil SA to Israel Chemicals Ltd for $52 million, according to a securities filing published on Thursday. The deal is subject to regulatory approval, according to the filing dated Dec. 20. Fosbrasil is based in the town of Cajati in Brazil's São Paulo industrial state, and produces phosphates. Phosphoric acid is used as a food additive, dispersing agent and as fertilizer feedstock. Efforts to contact Israel Chemicals Ltd were unsuccessful. The deal comes as Vale focuses on developing its mining assets in Brazil and sheds non-core assets like phosphates, logistics and energy.