PLYMOUTH, Minn., Feb. 3, 2016 /PRNewswire/ -- In response to
current crop nutrient market conditions, The Mosaic Company
(NYSE:MOS) announced today the Company will reduce production in
its Phosphates business. The Company intends to reduce production
by up to 400,000 tonnes with rotating plant shutdowns in the first
quarter of 2016.
"With the recent price volatility and decline in raw material
costs, buyers appear to be delaying purchases. This is
lengthening the seasonal period of weak demand," said Rick McLellan, Senior Vice President,
Commercial. "Today's crop nutrient prices, including
phosphates, are attractive to farmers globally and we expect a
strong demand response after this seasonally slow period."
"The long-term positive outlook for phosphates has not changed,
but we are adjusting our production levels to match immediate
demand and manage our margins," said Joc
O'Rourke, President and Chief Executive Officer.
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 document 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 Wa'ad Al Shamal Phosphate Company (also known as the Ma'aden
joint venture) and 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 the ability of the Ma'aden joint venture
to obtain additional planned funding in acceptable amounts and upon
acceptable terms, the timely development and commencement of
operations of production facilities in the Kingdom of Saudi Arabia, the future success of
current plans for the Ma'aden joint venture and any future changes
in those plans; difficulties with realization of the benefits of
our long term natural gas based pricing ammonia supply agreement
with CF, including the risk that the cost savings from the
agreement may not be realized or that the price of natural
gas or ammonia during the agreement's term are at levels at which
the pricing becomes disadvantageous to Mosaic; customer defaults;
the effects of Mosaic's decisions to exit business operations or
locations; 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; the effect of future product innovations or development
of new technologies on demand for our products; changes in foreign
currency and exchange rates; international trade risks and other
risks associated with Mosaic's international operations and those
of joint ventures in which Mosaic participates, including the risk
that protests against natural resource companies in Peru extend to or impact the Miski Mayo mine;
changes in government policy; changes in environmental and other
governmental regulation, including expansion of the types and
extent of water resources regulated under federal law, greenhouse
gas regulation, implementation of numeric water quality standards
for the discharge of nutrients into Florida waterways or efforts to reduce the
flow of excess nutrients into the Mississippi River basin, the
Gulf of Mexico or elsewhere;
further developments in judicial or administrative proceedings, or
complaints that Mosaic's operations are adversely impacting nearby
farms, business operations or properties; difficulties or delays in
receiving, increased costs of or challenges to necessary
governmental permits or approvals or increased financial assurance
requirements; resolution of global tax audit activity; the
effectiveness of Mosaic's processes for managing its strategic
priorities; adverse weather conditions affecting operations in
Central Florida, the Mississippi
River basin, the Gulf Coast of the United
States or Canada, and
including potential hurricanes, excess heat, cold, snow, rainfall
or drought; actual costs of various items differing from
management's current estimates, including, among others, asset
retirement, environmental remediation, reclamation or other
environmental regulation, Canadian resources taxes and royalties,
or the costs of the Ma'aden joint venture, its existing or future
funding and Mosaic's commitments in support of such funding;
reduction of Mosaic's available cash and liquidity, and increased
leverage, due to its use of cash and/or available debt capacity to
fund financial assurance requirements and strategic investments;
brine inflows at Mosaic's Esterhazy,
Saskatchewan, potash mine or other potash shaft mines; other
accidents and disruptions involving Mosaic's operations, including
potential mine fires, floods, explosions, seismic events or
releases of hazardous or volatile chemicals; and risks associated
with cyber security, including reputational loss, 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. Actual results may differ from those set forth in the
forward-looking statements.
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SOURCE The Mosaic Company