PLYMOUTH, Minn., March 31, 2017 /PRNewswire/ -- In response
to customer inquiries, The Mosaic Company (NYSE: MOS)
announced an incident at its Esterhazy K2 potash mine involving a skip.
The incident occurred in the later part of the first quarter and
is not expected to materially impact first quarter potash results.
The Company estimates a loss of production in the range of 200,000
to 300,000 tonnes, which is expected to negatively impact second
quarter sales volumes.
The Company expects the skip to be repaired and resume
operations in the next several days.
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
our proposed acquisition of the global phosphate and potash
operations of Vale S.A. ("Vale") conducted through Vale
Fertilizantes S.A. (the "Transaction") and the anticipated benefits
and synergies of the proposed Transaction, 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 possibility
that the closing of the proposed Transaction may be delayed or may
not occur, including delays or risks arising from any inability to
obtain governmental approvals of the Transaction on the proposed
terms and schedule, any inability of Vale to achieve certain other
specified regulatory and operational milestones or to successfully
complete the transfer of the Cubatão business to Vale and its
affiliates in a timely manner, and the ability to satisfy any of
the other closing conditions; our ability to secure financing, or
financing on satisfactory terms and in amounts sufficient to
fund the cash portion of the purchase price without the need for
additional funds from other liquidity sources; difficulties with
realization of the benefits of the proposed Transaction, including
the risks that the acquired business may not be integrated
successfully or that the anticipated synergies or cost or capital
expenditure savings from the Transaction may not be fully realized
or may take longer to realize than expected, including because of
political and economic instability in Brazil or changes in government policy in
Brazil; 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, the ability of the Wa'ad
Al Shamal Phosphate Company (also known as MWSPC) 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 MWSPC 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
Industries, Inc., including the risk that the cost savings
initially anticipated from the agreement may not be fully realized
over its term or that the price of natural gas or ammonia during
the term are at levels at which the pricing is disadvantageous to
Mosaic; customer defaults; the effects of Mosaic's decisions to
exit business operations or locations; 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, carbon taxes or other 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 MWSPC, 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, sinkholes 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