PLYMOUTH, Minn.--(BUSINESS WIRE)--The Mosaic Company (NYSE: MOS) announced that Mosaic Fertilizantes will idle production at its Tapira and Catalão phosphate mines in Brazil. The company currently has the rock and finished product inventory necessary to meet near-term market requirements. During this period and as necessary, the Company will also ship phosphates from its operations in Florida and rock from its Peruvian mine for use in Brazilian production to meet customer needs in Brazil, leveraging the Company’s position as a global, integrated producer.
The company is taking these actions in order to comply with new Brazilian regulations governing mine tailings dams. Last month, Mosaic Fertilizantes, with the technical approval of the National Mining Agency (ANM), filed an application for the extension of the deadline for submission of the Stability Condition Statements (DCE) for three of its dams. The requested extension was to allow expert consultants to finalize additional recommended studies and geotechnical analysis, which will be completed in April. The company did not receive final agreement from the ANM regarding the requested extension.
Without final agreement from the ANM, and in alignment with the new ANM standards, the company has implemented the Emergency Action Plan for Mining Dams (PAEBM) for the BL1 and BR dams in Tapira (MG) and the BR dam in Catalão (GO), which were classified as emergency level 1, the least critical of the three-category rating system.
Mosaic Fertilizantes will make every effort to obtain the DCEs as quickly as possible. Geotechnical research, analysis with external consultants and remediation plans will continue until the dams meet the new standards.
The company reaffirms that the dams do not present imminent risks of disruption and reiterates its commitment to the communities and regions where it operates.
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 phosphates and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
This 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 strategic plans pertaining to tailings dams in Brazil and other statements that could impact 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, effects of Mosaic’s decision to temporarily idle production at the Tapira and Catalão mines, including the operational and financial impact of sourcing phosphate and phosphate rock from other locations to meet production demands in Brazil; the predictability and ability of Mosaic to comply with Brazilian regulations pertaining to tailings dams, the effectiveness of the Emergency Action Plan for Mining Dams, as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission.
The Mosaic Company cautions investors that actual events and results could differ materially from those described in the forward-looking statements and could impact results of operations. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor can it assess the impact of each factor on the business or the extent to which any factor, or a combination of factors, may differ materially from those contained in any forward-looking statements. Furthermore, the Mosaic Company cautions its investors not to place undue reliance on the forward-looking statements, which speak only as of the date they are made. The Mosaic Company undertakes no obligation to publicly update or revise any forward-looking statements.