Wedoany.com Report-Aug. 16, The Mosaic Company, headquartered in Tampa, Florida, has entered an agreement to sell Mosaic Potassio Mineração Ltda, operator of the Taquari-Vassouras potash mine in Rosário do Catete, Sergipe, Brazil, to VL Mineração Ltda. The deal includes up to $27 million in cash payments: $12 million at closing, $10 million after one year, and $5 million over six years. VL Mineração will take on $22 million in asset retirement obligations. Subject to approval by Brazil’s Administrative Council for Economic Defense and other conditions, the transaction is set to close by the end of 2025. Mosaic will mark the asset as “held for sale” in Q3, expecting a $50-$70 million book loss.

Sustaining the Taquari mine demands over $25 million in capital investments. Mosaic believes redirecting these funds to other company initiatives offers better returns. VL Mineração is committed to investing in the mine to support its longevity, benefiting the local economy, employees, and community.

Bruce Bodine, Mosaic’s President and CEO, said: “One of our priorities is to elevate our core business, and one way to do that is by reallocating capital to ensure we’re investing where we have the greatest capacity to succeed. This sale advances progress toward that priority – allowing us to focus capital on opportunities where we have a competitive advantage and are expected to generate higher returns.”

Daniel Moreira, CEO of VL Holding, stated: “This agreement allows us to contribute to the development of Brazilian agriculture, including maintaining and expanding the domestic potash supply in the fertilizer market, as we are confident the mine will be profitable and efficient under our ownership and operating model.”