The Mosaic Company announced that it has entered into an agreement to sell Mosaic Potassio Mineração Ltda (MPM), the entity that operates the Taquari-Vassouras potash mine located in Rosário do Catete, Sergipe, Brazil, to VL Mineração Ltda.

Upon the closing of the transaction, VL Mineração will pay Mosaic up to US$27 million in cash including $12 million upon closing, $10 million one year after closing and $5 million over six years, and will assume responsibility for approximately $22 million in asset retirement obligations (ARO).

The transaction is subject to obtaining approval by the Brazilian Administrative Council for Economic Defense (CADE) and other customary closing conditions. Mosaic expects the transaction to close by the end of 2025. Beginning in the third quarter, Mosaic will record the asset as "held for sale" with an expected book loss of $50-$70 million.

Mosaic's operations at the Taquari mine require capital investments exceeding $25 million to ensure continued viability. Mosaic believes that the capital required to continue to own and operate Taquari has more attractive uses elsewhere within the company. VL Mineração has expressed a strong interest in making the necessary investments to extend the Taquari operations to the benefit of the local economy, employees and the community.

"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," said Bruce Bodine, Mosaic's President and CEO.

"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," said Daniel Moreira, CEO of VL Holding.