PLYMOUTH, Minn., April 4, 2008 /PRNewswire-FirstCall/ -- The Mosaic
Company (NYSE: MOS) announced today a long term potash capacity expansion plan
in Saskatchewan, Canada in response to continuing robust global demand for
potash. The total expansions announced, together with those announced in
May 2007, are expected to increase Mosaic's annual capacity by approximately
5.1 million metric tonnes at an estimated average capital cost that is
significantly lower than greenfield projects. Upon completion of these
expansions, Mosaic's total annual capacity will approximate 15.5 million
tonnes, maintaining Mosaic as one of the premier potash companies in the
world. The expansions are projected to occur over the next twelve years, with
the first expansion production coming on line in 2009. Some of the expansions
are already underway while others are in the planning and approval stages.
In addition to these expansions, approximately 1.3 million tonnes of
annual capacity will revert to Mosaic within the next few years upon the
expiration of a third party tolling agreement at Esterhazy.
"We believe the global demand and supply fundamentals support this growth
in our capacity and will allow us to fulfill our growing customer needs,"
stated Jim Prokopanko, Mosaic's President and Chief Executive Officer. "We
are positioned to bring on what we believe is the lowest cost incremental
capacity in the industry while maintaining the flexibility to moderate the
timing of these expansions as demand materializes," Prokopanko added.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers
of concentrated phosphate and potash crop nutrients. For the global
agriculture industry, Mosaic is a single source of phosphates, potash,
nitrogen fertilizers and feed ingredients. More information on the company is
available at http://www.mosaicco.com.
Estimated Annual Estimated Cost
Capacity Increase (current dollars Estimated
Location (tonnes in millions) in millions) Completion
------------------------- ------------------- ---------------- ----------
Esterhazy, Saskatchewan 0.9 $700 2012
0.9 1,000 2020
------------------- ----------------
1.8 1,700
Belle Plaine, Saskatchewan 0.1 20 2010
0.4 100 2012
1.5 800 2014-2017
------------------- ----------------
2.0 920
Colonsay, Saskatchewan 0.3 30 2009
1.0 500 2013-2016
------------------- ----------------
1.3 530
------------------- ----------------
Total 5.1 $3,150
------------------- ----------------
This press 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 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 the predictability of fertilizer, raw material and energy markets
subject to competitive market pressures; changes in foreign currency and
exchange rates; international trade risks including, but not limited to,
changes in policy by foreign governments; changes in environmental and other
governmental regulation; adverse weather conditions affecting operations in
central Florida or the Gulf Coast of the United States, including potential
hurricanes or excess rainfall; actual costs of closure of the South Pierce,
Green Bay and Fort Green facilities differing from management's current
estimates; accidents involving Mosaic's operations, including brine inflows at
its Esterhazy, Saskatchewan potash mine as well as potential mine fires,
floods, explosions or releases of hazardous or volatile chemicals, 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.
SOURCE The Mosaic Company
Contact: Media, Linda Thrasher, +1-763-577-2864, or Investors, Christine Battist, +1-763-577-2828, both of The Mosaic Company