10q10k10q10k.net

What changed in Mosaic Company (The)'s 10-K — 2022 vs 2023

vs

Paragraph-level year-over-year comparison of Mosaic Company (The)'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+549 added−541 removedSource: 10-K (2024-02-22) vs 10-K (2023-02-23)

Top changes in Mosaic Company (The)'s 2023 10-K

549 paragraphs added · 541 removed · 456 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

130 edited+29 added−35 removed90 unchanged
Biggest changeThis includes 7,056,229 shares we purchased under an accelerated share repurchase agreement in 2022. • In the first quarter of 2022, our Board of Directors approved a regular dividend increase to $0.60 per share annually from $0.45, beginning with the second quarter of 2022.
Biggest changeIn the fourth quarter of 2023, our Board of Directors approved a regular dividend increase to $0.84 per share annually from $0.80, beginning with the dividend declared in December 2023. • In February 2023, pursuant to existing stock repurchase authorizations, we entered into an accelerated share repurchase agreement (the “ 2023 ASR Agreement ”) with a third-party financial institution to repurchase $300 million of our Common Stock.
Operational capacities will continue to be updated to the extent new production results impact ore grades assumptions. (f) We have the ability to reach an annual operating capacity of 2.1 million tonnes over time by increasing our staffing levels and investment in mine development activities. Our Colonsay mine operates as a swing mine to meet market demands.
Operational capacities will continue to be updated to the extent new production results impact ore grades assumptions. (f) Our Colonsay mine operates as a swing mine to meet market demands. We have the ability to reach an annual operating capacity of 2.1 million tonnes over time by increasing our staffing levels and investment in mine development activities.
Alternative transportation and terminaling facilities might not have sufficient capacity to fully serve all of our facilities in the event of a disruption to current transportation or terminaling facilities. Changes in the price of sulfur or disruptions to sulfur transportation or terminaling facilities could have a material impact on our business.
Alternative transportation and terminaling facilities might not have sufficient capacity to fully serve all of our facilities in the event of a disruption to current transportation or terminaling facilities. Changes in the price of sulfur or disruptions to sulfur transportation or terminaling facilities could have a material impact on our business.
Land Holdings Mosaic Fertilizantes owns the surface rights of certain rural lands comprising over 34,000 hectares (84,000 acres) in the States of São Paulo, Minas Gerais, Goiás, Paraná, Mato Grosso, Santa Catarina, Bahia and Sergipe, and has the right to mine additional properties which contain phosphate rock or potash reserves.
Land Holdings Mosaic Fertilizantes owns properties and the surface rights of certain rural lands comprising over 34,000 hectares (84,000 acres) in the States of São Paulo, Minas Gerais, Goiás, Paraná, Mato Grosso, Santa Catarina, Bahia and Sergipe, and has the right to mine additional properties which contain phosphate rock or potash reserves.
(e) Annual operational capacity is our estimated long-term potash capacity based on the quality of reserves and the nature of the geologic formations expected to be mined, milled and/or processed over the long term, average amount of scheduled down time, including maintenance and scheduled turnaround time, and product mix, and no significant modifications to operating conditions, equipment or facilities.
(e) Annual operational capacity is our estimated potash production capacity based on the quality of reserves and the nature of the geologic formations expected to be mined, milled and/or processed over the long term, average amount of scheduled down time, including maintenance and scheduled turnaround time, and product mix, and no significant modifications to operating conditions, equipment or facilities.
Annual capacity by plant as of December 31, 2022 and production volumes by plant for 2022 are listed below: (tonnes in millions) Phosphoric Acid Processed Phosphate (a) /DAP/MAP/ MicroEssentials ® /Feed Phosphate Operational Capacity (b) Operational Capacity (b) Facility Production (c) Production (c) Florida: Bartow 1.1 0.8 2.5 1.8 New Wales 1.7 1.1 4.0 2.5 Riverview 0.9 0.6 1.8 1.3 3.7 2.5 8.3 5.6 Louisiana: Faustina — — 1.6 1.1 Uncle Sam 0.8 0.5 — — 0.8 0.5 1.6 1.1 Total 4.5 3.0 9.9 6.7 ______________________________ (a) Our ability to produce processed phosphates has been less than our annual operational capacity stated in the table above, except to the extent we purchase P 2 O 5 .
Annual capacity by plant as of December 31, 2023 and production volumes by plant for 2023 are listed below: (tonnes in millions) Phosphoric Acid Processed Phosphate (a) /DAP/MAP/ MicroEssentials ® /Feed Phosphate Operational Capacity (b) Operational Capacity (b) Facility Production (c) Production (c) Florida: Bartow 1.1 0.8 2.5 1.9 New Wales 1.7 1.1 4.0 2.4 Riverview 0.9 0.7 1.8 1.4 3.7 2.6 8.3 5.7 Louisiana: Faustina — — 1.6 0.9 Uncle Sam 0.8 0.4 — — 0.8 0.4 1.6 0.9 Total 4.5 3.0 9.9 6.6 ______________________________ (a) Our ability to produce processed phosphates has been less than our annual operational capacity stated in the table above, except to the extent we purchase P 2 O 5 .
Additionally, we own 75% of the Miski Mayo Mine, which has an annual capacity of 4.0 million tonnes. Production of one tonne of DAP requires between 1.6 and 1.7 tonnes of phosphate rock. All of our wholly-owned phosphate mines and related mining operations in North America are located in central Florida.
Additionally, we own 75% of the Miski Mayo Mine, which has an annual capacity of 4.8 million tonnes. Production of one tonne of DAP requires between 1.6 and 1.7 tonnes of phosphate rock. All of our wholly-owned phosphate mines and related mining operations in North America are located in central Florida.
We have other production, blending or distribution operations in Brazil, China, India and Paraguay, as well as a strategic equity investment in a joint venture that operates a phosphate rock mine and chemical complexes in the Kingdom of Saudi Arabia. Our operations serve the top four nutrient-consuming countries in the world: China, India, U.S. and Brazil.
We have other production, blending or distribution operations in Brazil, China, India and Paraguay, as well as an equity investment in a joint venture that operates a phosphate rock mine and chemical complexes in the Kingdom of Saudi Arabia. Our operations serve the top four nutrient-consuming countries in the world: China, India, U.S. and Brazil.
P 2 O 5 is the key building block for the production of high analysis or concentrated phosphate crop nutrients and animal feed products and is the most comprehensive measure of phosphate capacity and production and a commonly used benchmark in our industry. Our U.S. P 2 O 5 production totaled approximately 3.0 million tonnes during 2022.
P 2 O 5 is the key building block for the production of high analysis or concentrated phosphate crop nutrients and animal feed products and is the most comprehensive measure of phosphate capacity and production and a commonly used benchmark in our industry. Our U.S. P 2 O 5 production totaled approximately 3.0 million tonnes during 2023.
International Outside of the U.S. and Canada, we market our Phosphates segment’s products through our Mosaic Fertilizantes segment and our China and India distribution businesses, as well as a salesforce focused on geographies outside of North America. The countries that account for the largest amount of our phosphates sales outside the U.S., by volume, are Brazil, Canada, Argentina and Mexico.
International Outside of the U.S. and Canada, we market our Phosphates segment’s products through our Mosaic Fertilizantes segment and our China and India distribution businesses, as well as a salesforce focused on geographies outside of North America. The countries that account for the largest amount of our phosphates sales outside the U.S., by volume, are Brazil, Canada, Mexico and Colombia.
We have included a discussion of sulfur prices in our Management’s Analysis. Ammonia We use ammonia together with P 2 O 5 to produce DAP, MAP and MicroEssentials ®. We consumed approximately 1.0 million tonnes of ammonia during 2022. Production of one tonne of DAP requires approximately 0.23 tonnes of ammonia.
We have included a discussion of sulfur prices in our Management’s Analysis. Ammonia We use ammonia together with P 2 O 5 to produce DAP, MAP and MicroEssentials ® . We consumed approximately 1.0 million tonnes of ammonia during 2023. Production of one tonne of DAP requires approximately 0.23 tonnes of ammonia.
Our sales of potash products outside of the U.S. and Canada are made through Canpotex. Canpotex sales are allocated among its members based on peaking capacity. In 2022, our entitlement percentage of Canpotex was 36.2%. Our potash exports from Carlsbad are sold through our own sales force.
Our sales of potash products outside of the U.S. and Canada are made through Canpotex. Canpotex sales are allocated among its members based on peaking capacity. In 2023, our entitlement percentage of Canpotex was 36.2%. Our potash exports from Carlsbad are sold through our own sales force.
During 2022, we operated three active mines in Florida: Four Corners, South Fort Meade and Wingate. We plan to explore and develop the DeSoto property and the South Pasture property, which was previously idled, to offset future depletion at our Florida properties.
During 2023, we operated three active mines in Florida: Four Corners, South Fort Meade and Wingate. We plan to explore and develop the DeSoto property and the South Pasture property, which was previously idled, to offset future depletion at our Florida properties.
We have included additional information about these and other developments in our business during 2022 in our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“ Management’s Analysis ”) and in the Notes to Consolidated Financial Statements.
We have included additional information about these and other developments in our business during 2023 in our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“ Management’s Analysis ”) and in the Notes to Consolidated Financial Statements.
The Project benefits from the availability of key raw nutrients from sources within Saudi Arabia. Sulfur We use molten sulfur at our phosphates concentrates plants to produce sulfuric acid, primarily for use in our production of P 2 O 5 . We purchased approximately 3.4 million long tons of sulfur during 2022.
The Project benefits from the availability of key raw nutrients from sources within Saudi Arabia. Sulfur We use molten sulfur at our phosphates concentrates plants to produce sulfuric acid, primarily for use in our production of P 2 O 5 . We purchased approximately 3.3 million long tons of sulfur during 2023.
“Properties” for a discussion of our phosphate mining properties, including processing methods, facilities, production and summaries of our mineral resources and reserves, both in the aggregate and for our individual material phosphate mining properties.
Properties” for a discussion of our phosphate mining properties, including processing methods, facilities, production and summaries of our mineral resources and reserves, both in the aggregate and for our individual material phosphate mining properties.
We also produce a double sulfate of potash magnesia product, which we market under our brand name K-Mag ® , at our Carlsbad, New Mexico facility. 7 Table of Conten t Our potash products are marketed worldwide to crop nutrient manufacturers, distributors and retailers and are also used in the manufacturing of mixed crop nutrients and, to a lesser extent, in animal feed ingredients.
We also produce a double sulfate of potash magnesia product, which we market under our brand name K-Mag ® , at our Carlsbad, New Mexico facility. Our potash products are marketed worldwide to crop nutrient manufacturers, distributors and retailers and are also used in the manufacturing of mixed crop nutrients and, to a lesser extent, in animal feed ingredients.
From these facilities, we distribute Mosaic-produced phosphate and potash products for customers who in turn resell the product into the distribution channel or directly to farmers in the U.S. and Canada. We own port facilities in Tampa, Florida which have deep water berth capabilities providing access to the Gulf of Mexico.
From these facilities, we distribute Mosaic-produced phosphate and potash products for customers who in turn resell the product into the distribution channel or directly to farmers in the U.S. and Canada. 14 Table of Co ntent We own port facilities in Tampa, Florida which have deep water berth capabilities providing access to the Gulf of Mexico.
Prior to that, he served as Senior Vice President - Potash (from June 2016 to December 31, 2018); as Vice President - Potash (from April to May 2016); as Vice President - Supply Chain (from August 2015 to March 2016); as Vice President - Operations Business Development (from October 2014 to August 2015); as Vice President - Operations for our Esterhazy and Colonsay potash production facilities (from July 2013 to October 2014); as the General Manager, Esterhazy (from September 2012 to June 2013); and as the General Manager, Four Corners (from March 2010 to August 2012).
Bodine served as Senior Vice President - Potash (from June 2016 to December 31, 2018); as Vice President - Potash (from April to May 2016); as Vice President - Supply Chain (from August 2015 to March 2016); as Vice President - Operations Business Development (from October 2014 to August 2015); as Vice President - Operations for our Esterhazy and Colonsay potash production facilities (from July 2013 to October 2014); as the General Manager, Esterhazy (from September 2012 to June 2013); and as the General Manager, Four Corners (from March 2010 to August 2012).
We account for approximately 14% of estimated world annual production and 35% of estimated North American annual production. 9 Table of Conten t The following table shows, for each of our potash mines, annual capacity as of December 31, 2022 and finished product output for 2022: (tonnes in millions) Facility Annualized Proven Peaking Capacity (a)(c)(d) Annual Operational Capacity (a)(b)(d)(e) Finished Product (b) Canada Belle Plaine—MOP 3.9 3.0 2.8 Colonsay—MOP (f) 2.6 1.5 0.9 Esterhazy—MOP (g) 6.3 6.0 4.7 Canadian Total 12.8 10.5 8.4 United States Carlsbad—K-Mag ®(h) 0.9 0.7 0.6 United States Total 0.9 0.7 0.6 Totals 13.7 11.2 9.0 ______________________________ (a) Finished product.
We account for approximately 13% of estimated world annual production and 35% of estimated North American annual production. 9 Table of Co ntent The following table shows, for each of our potash mines, annual capacity as of December 31, 2023 and finished product output for 2023: (tonnes in millions) Facility Annualized Proven Peaking Capacity (a)(c) Annual Operational Capacity (a)(b)(e) Finished Product (b) Canada Belle Plaine—MOP (d) 3.9 3.0 2.8 Colonsay—MOP (d)(f) 2.6 1.5 0.6 Esterhazy—MOP (d)(g) 6.3 6.3 4.4 Canadian Total 12.8 10.8 7.8 United States Carlsbad—K-Mag ®(h) 0.9 0.7 0.5 United States Total 0.9 0.7 0.5 Totals 13.7 11.5 8.3 ______________________________ (a) Finished product.
The following map shows the locations of each of our phosphate concentrates plants in the U.S. and each of our active, temporarily idled, and planned phosphate mine locations, including beneficiation plants, in Florida. The reserves associated with our Ona, Florida location have been allocated to other active mines based on our future mining plans: 3 Table of Conten t U.S.
The following map shows the locations of each of our phosphate concentrates plants in the U.S. and each of our active, temporarily idled, and planned phosphate mine locations, including beneficiation plants, in Florida. The reserves associated with our Ona, Florida location have been allocated to other active mines based on our future mining plans: U.S.
MAP is a solid granular product that is applied directly or blended with other solid plant nutrient products. 4 Table of Conten t • MicroEssentials ® is a value-added ammoniated phosphate product that is enhanced through a patented process that creates very thin platelets of sulfur and other micronutrients, such as zinc, on the granulated product.
MAP is a solid granular product that is applied directly or blended with other solid plant nutrient products. • MicroEssentials ® is a value-added ammoniated phosphate product that is enhanced through a patented process that creates very thin platelets of sulfur and other micronutrients, such as zinc, on the granulated product.
The U.S. potash operation in New Mexico purchases physical gas in the southwest respective regional market using the El Paso 10 Table of Conten t San Juan Basin market pricing reference. We use financial derivative contracts to manage the pricing on portions of our natural gas requirements.
The U.S. potash operation in New Mexico purchases physical gas in the southwest respective regional market using the El Paso 10 Table of Co ntent San Juan Basin market pricing reference. We use financial derivative contracts to manage the pricing on portions of our natural gas requirements.
In India, we have distribution facilities to import and sell crop nutrients. In 2022, we distributed approximately 535,000 tonnes of phosphate and potash crop nutrient products in India. SALES AND DISTRIBUTION ACTIVITIES United States and Canada We have a U.S. and Canada sales and marketing team that serves our business segments.
In India, we have distribution facilities to import and sell crop nutrients. In 2023, we distributed approximately 536,000 tonnes of phosphate and potash crop nutrient products in India. SALES AND DISTRIBUTION ACTIVITIES United States and Canada We have a U.S. and Canada sales and marketing team that serves our business segments.
This information is incorporated by reference into this section from Part II, Item 8, “Financial Statements and Supplementary Data”. Phosphates Segment Our Phosphates business segment owns and operates mines and production facilities in Florida which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana which produce concentrated phosphate crop nutrients.
This information is incorporated by reference into this section from Part II, Item 8, “Financial Statements and Supplementary Data”. 3 Table of Co ntent Phosphates Segment Our Phosphates business segment owns and operates mines and production facilities in Florida which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana which produce concentrated phosphate crop nutrients.
Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, debt expenses, Streamsong Resort ® results of operations, and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other.
Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, debt expenses, and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other.
Mosaic offers companywide educational reimbursement programs to help employees in each of our operating companies acquire new skills and capabilities to better meet their job responsibilities and provide for future career opportunities within the Company.
Mosaic offers companywide educational reimbursement programs to help employees in 18 Table of Co ntent each of our operating companies acquire new skills and capabilities to better meet their job responsibilities and provide for future career opportunities within the Company.
Our Florida phosphate rock mines produced approximately 10.5 million tonnes in 2022 and accounted for approximately 47% of estimated North American annual production. We are the world’s second largest miner of phosphate rock (excluding China) and currently operate four mines in North America with a combined annual capacity of approximately 18.0 million tonnes.
Our Florida phosphate rock mines produced approximately 10.0 million tonnes in 2023 and accounted for approximately 47% of estimated North American annual production. We are the world’s second largest miner of phosphate rock (excluding China) and currently 5 Table of Co ntent operate four mines in North America with a combined annual capacity of approximately 18.0 million tonnes.
In addition, we measure natural gas, a raw material 2 Table of Conten t used in the production of our products, in MM BTU, which stands for one million British Thermal Units (“ BTU ”). One BTU is equivalent to 1.06 Joules.
In addition, we measure natural gas, a raw material used in the production of our products, in MM BTU, which stands for one million British Thermal Units (“ BTU ”). One BTU is equivalent to 1.06 Joules.
The average product mix in our Blends (by volume) contains approximately 24% nitrogen, 51% phosphate and 25% potash, although this mix differs based on seasonal and other factors. All of our production in Brazil is consumed within the country.
The average product mix in our Blends (by volume) contains approximately 19% nitrogen, 51% phosphate and 30% potash, although this mix differs based on seasonal and other factors. All of our production in Brazil is consumed within the country.
(“ Fospar ”). Fospar owns and operates an SSP (defined below) granulation plant, which produces approximately 0.5 million tonnes of SSP per year, and a deep-water port and throughput warehouse terminal facility in Paranagua, Brazil. The port facility at Paranagua handles approximately 3.6 million tonnes of imported crop nutrients.
Fospar owns and operates an SSP (defined below) granulation plant, which produces approximately 0.5 million tonnes of SSP per year, and a deep-water port and throughput warehouse terminal facility in Paranagua, Brazil. The port facility at Paranagua handles approximately 11 Table of Co ntent 3.6 million tonnes of imported crop nutrients.
Annual capacity and production volume by plant as of December 31, 2022 are listed below: (tonnes of ore in millions) Phosphoric Acid Processed Phosphate (a) (MAP/TSP/SSP/DCP/Feed) Facility Capacity (b) Production (c) Capacity (b) Production (c) Phosphate Uberaba 0.9 0.9 2.0 1.7 Cajati 0.2 0.1 0.5 0.3 Araxá — — 1.1 0.9 Catalão — — 0.4 0.3 Total 1.1 1.0 4.0 3.2 ______________________________ (a) Our ability to produce processed phosphates has been less than our annual operational capacity as stated in the table above, except to the extent we purchase phosphoric acid.
Annual capacity and production volume by plant as of December 31, 2023 are listed below: (tonnes of ore in millions) Phosphoric Acid Processed Phosphate (a) (MAP/TSP/SSP/DCP/Feed) Facility Capacity (b) Production (c) Capacity (b) Production (c) Phosphate Uberaba 0.9 0.8 2.0 1.6 Cajati 0.2 0.2 0.5 0.4 Araxá — — 1.1 0.8 Catalão — — 0.4 0.3 Total 1.1 1.0 4.0 3.1 ______________________________ 12 Table of Co ntent (a) Our ability to produce processed phosphates has been less than our annual operational capacity as stated in the table above, except to the extent we purchase phosphoric acid.
As part of Mosaic’s strategic priorities, we are committed to prioritizing our internal culture and external partnerships to meet our commitments to our employees and stakeholders and to be an employer of choice for generations to come. Employee Health and Safety –safety is non-negotiable. We strive for zero harm to people and zero environmental incidents.
As part of Mosaic’s strategic priorities, we are committed to prioritizing our internal culture and external partnerships to meet our commitments to our employees and stakeholders and to be an employer of choice for generations to come. Employee Health and Safety –Safety is a top priority and we strive for zero harm to people and zero environmental incidents.
We typically purchase approximately 11.4 million MM BTU of natural gas per year for use in ammonia production at Faustina. Our ammonia requirements for our Florida operations are purchased rather than manufactured on site.
We typically purchase approximately 15.5 million MM BTU of natural gas per year for use in ammonia production at Faustina. Our ammonia requirements for our Florida operations are purchased rather than manufactured on site.
Ammonia We use ammonia, together with phosphoric acid, to produce MAP, and to a lesser extent for SSP production. We consumed approximately 137,495 tonnes of ammonia during 2022. Production of one tonne of MAP requires approximately 0.137 tonnes of ammonia. We purchase all of our ammonia under a long-term supply agreement with two suppliers.
Ammonia We use ammonia, together with phosphoric acid, to produce MAP, and to a lesser extent for SSP production. We consumed approximately 129,710 tonnes of ammonia during 2023. Production of one tonne of MAP requires approximately 0.137 tonnes of ammonia. We purchase all of our ammonia under a long-term supply agreement with two suppliers.
Our U.S. operations account for approximately 7% of estimated global annual production and 50% of estimated North American annual output. Our phosphate crop nutrient products are marketed worldwide to crop nutrient manufacturers, distributors, retailers and farmers.
Our U.S. operations account for approximately 6% of estimated global annual production and 54% of estimated North American annual output. Our phosphate crop nutrient products are marketed worldwide to crop nutrient manufacturers, distributors, retailers and farmers.
(c) Actual production varies from annual operational capacity shown in the table above due to factors that include, among others, the level of demand for our products, maintenance and turnaround time, accidents and mechanical failure. 12 Table of Conten t The phosphoric acid produced at Cajati is used to produce DCP.
(c) Actual production varies from annual operational capacity shown in the table above due to factors that include, among others, the level of demand for our products, maintenance and turnaround time, accidents and mechanical failure. The phosphoric acid produced at Cajati is used to produce DCP. The phosphoric acid produced at Uberaba is used to produce MAP, TSP and DCP.
Our principal phosphate crop nutrient products are: • Diammonium Phosphate (18-46-0): Diammonium Phosphate (“ DAP ”) is the most widely used high-analysis phosphate crop nutrient worldwide. DAP is produced by first combining phosphoric acid with anhydrous ammonia in a reaction vessel.
Our principal phosphate crop nutrient products are: 4 Table of Co ntent • Diammonium Phosphate (18-46-0): Diammonium Phosphate (“ DAP ”) is the most widely used high-analysis phosphate crop nutrient worldwide. DAP is produced by first combining phosphoric acid with anhydrous ammonia in a reaction vessel.
The following charts show the respective contributions to 2022 sales volumes, net sales and gross margin for each of our business segments in effect at December 31, 2022: We account for approximately 12% of estimated global annual phosphate production.
The following charts show the respective contributions to 2023 sales volumes, net sales and gross margin for each of our business segments in effect at December 31, 2023: We account for approximately 12% of estimated global annual phosphate production. We also account for approximately 13% of estimated global annual potash production.
Our 13,570 colleagues embody Mosaic’s core values of innovation, collaboration, drive and responsibility, and are the key to enabling us to execute our mission to help the world grow the food it needs.
Our 14,049 colleagues embody Mosaic’s core values of innovation, collaboration, drive and responsibility, and are the key to enabling us to execute our mission to help the world grow the food it needs.
They also purchase phosphates, potash and nitrogen products from unrelated third parties, which we either use to produce blended crop nutrients or for resale. In China, we own two 300,000-tonne per year capacity blending plants. In 2022, we sold approximately 230,000 tonnes of Blends and distributed another 825,000 tonnes of phosphate and potash crop nutrients in China.
They also purchase phosphates, potash and nitrogen products from unrelated third parties, which we either use to produce blended crop nutrients or for resale. In China, we own two 300,000-tonne per year capacity blending plants. In 2023, we sold approximately 271,000 tonnes of Blends and distributed another 1,073,000 tonnes of phosphate and potash crop nutrients in China.
Our real property assets are generally comprised of concentrates plants, port facilities, phosphate mines and other property which we have acquired through our presence in Florida. Our long-term future land use strategy is to optimize the value of our land assets.
Our real property assets are generally comprised of concentrates plants, port facilities, phosphate mines and other property which we have acquired through our presence in Florida. Our long-term future land use strategy is to optimize the value of our land assets. Potash Segment We are one of the leading potash producers in the world.
We believe that our potash cost structure is competitive in the industry and should improve as we continue to complete our potash expansion projects. Mosaic Fertilizantes The Mosaic Fertilizantes segment operates in a highly competitive market in Brazil.
We believe that our potash cost structure is competitive in the industry and should improve as we continue to complete our potash expansion projects. 16 Table of Co ntent Mosaic Fertilizantes The Mosaic Fertilizantes segment operates in a highly competitive market in Brazil.
In addition, we use formed sulfur received through Tampa, Florida ports, which are delivered by truck to our New Wales facility and melted through our sulfur melter. We own and operate a sulfur terminal in Riverview, Florida. We also lease terminal space in Tampa, Florida and Galveston and Beaumont, Texas.
In addition, we use formed sulfur received through Tampa, Florida ports, which are delivered by truck to our New Wales facility and melted through our sulfur melter. We own and operate sulfur terminals in Riverview and Tampa, Florida, along with Galveston, Texas and Faustina, Louisiana. We also lease terminal space in Beaumont, Texas.
We have included a further discussion of the Canadian resource taxes and royalties in our Management’s Analysis. 8 Table of Conten t The map below shows the location of each of our potash properties: Our North American potash annualized operational capacity totals 11.2 million tonnes of product per year and accounts for approximately 14% of world annual capacity and 34% of North American annual capacity.
We have included a further discussion of the Canadian resource taxes and royalties in our Management’s Analysis. 8 Table of Co ntent The map below shows the location of each of our potash properties: Our North American potash annualized operational capacity totals 11.5 million tonnes of product per year and accounts for approximately 14% of world annual capacity and 41% of North American annual operational capacity.
Our potash product is marketed in Brazil to crop nutrient manufacturers, distributors and retailers and is also used in the manufacturing of crop nutrients. In 2022, we paid royalties of approximately $11.4 million related to the leasing of potash assets and mining rights for Taquari.
Our potash product is marketed in Brazil to crop nutrient manufacturers, distributors and retailers and is also used in the manufacturing of crop nutrients. In 2023, we paid royalties of approximately $9.8 million related to the leasing of potash assets and mining rights for Taquari.
We also sell potash to customers for industrial use. In addition, our potash products are used for de-icing and as a water softener regenerant. In 2022, we operated three potash mines in Canada, including two shaft mines and one solution mine, as well as one potash shaft mine in the U.S..
We also sell potash to customers for industrial use. In addition, our potash products are used for de-icing and as a water softener regenerant. 7 Table of Co ntent In 2023, we operated three potash mines in Canada, including two shaft mines and one solution mine, as well as one potash shaft mine in the U.S.
Similarly, we participate on local committees and associations focused on contributing to the vitality of the people and communities around us. • 2022 was the second year of the Mosaic Employee Giving Program (the“Program”) that provides employees with flexibility to connect their personal causes to corporate giving, matching and volunteerism opportunities.
Similarly, we participate on local committees, boards, and associations focused on contributing to the vitality of the people and communities around us. • 2023 was the third year of the Mosaic Employee Giving Program (the “ Program ”) that provides employees with flexibility to connect their personal causes to corporate giving, matching and volunteerism opportunities.
At our shaft mines, natural gas is used as a fuel to heat fresh air supplied to the shaft mines and for drying potash products. Combined natural gas usage for both the solution and shaft mines totaled 17.7 million MM BTU during 2022.
At our shaft mines, natural gas is used as a fuel to heat fresh air supplied to the shaft mines and for drying potash products. Combined natural gas usage for both the solution and shaft mines totaled 16.6 million MM BTU during 2023.
With our dedicated sulfur transportation barges and tugs, and our ownership interest in Gulf Sulphur Services, we are also well-positioned to source an adequate, flexible and cost-effective supply of sulfur, our third key input, to our Florida and Louisiana phosphate production facilities.
With our dedicated sulfur transportation barges and tugs, and our ownership of GSS, we are also well-positioned to source an adequate, flexible and cost-effective supply of sulfur, our third key input, to our Florida and Louisiana phosphate production facilities.
On October 14, 2022, we received notice from CF to exercise the bilateral, contractual right to end the ammonia supply agreement in its current form, effective January 1, 2025. We are confident that we will continue to have adequate sources of supply for ammonia at competitive pricing, including from CF.
On October 14, 2022, we received notice from CF to exercise the bilateral, contractual right to end the ammonia supply agreement in its current form, effective January 1, 2025. We are confident that we will continue to have adequate sources of supply for ammonia at competitive pricing. We produce ammonia at Faustina, Louisiana primarily for our own consumption.
We produced approximately 6.3 million tonnes of concentrated phosphate crop nutrients during 2022 and accounted for approximately 69% of estimated North American annual production. Phosphate Rock Phosphate rock is the key mineral used to produce phosphate crop nutrients and feed phosphate.
We produced approximately 6.2 million tonnes of concentrated phosphate crop nutrients during 2023 and accounted for approximately 80% of estimated North American annual production. Phosphate Rock Phosphate rock is the key mineral used to produce phosphate crop nutrients and feed phosphate.
Pay equity will be reviewed internally every year and we expect to conduct external independent reviews every three years. 19 Table of Conten t INFORMATION ABOUT OUR EXECUTIVE OFFICERS Information regarding our executive officers as of February 23, 2023 is set forth below: Name Age Position Philip E. Bauer 50 Senior Vice President, General Counsel and Corporate Secretary Bruce M.
Pay equity will be reviewed internally every year and we expect to conduct external independent reviews every three years. 19 Table of Co ntent INFORMATION ABOUT OUR EXECUTIVE OFFICERS Information regarding our executive officers as of February 22, 2024 is set forth below: Name Age Position Philip E. Bauer 51 Senior Vice President, General Counsel and Corporate Secretary Bruce M.
Our Brazilian P 2 O 5 production totaled approximately 1.0 million tonnes in 2022 and accounted for approximately 99% of Brazilian annual output. Our principal phosphate crop nutrient products are: • Monoammonium Phosphate (11-52-0) ( “ MAP ” ): MAP is a crop nutrient composed of two macronutrients, nitrogen and phosphoric acid.
Our Brazilian phosphoric acid production totaled approximately 1.0 million tonnes in 2023 and accounted for approximately 84% of Brazilian annual output. Our principal phosphate crop nutrient products are: • Monoammonium Phosphate (11-52-0) ( “ MAP ” ): MAP is a crop nutrient composed of two macronutrients, nitrogen and phosphoric acid.
We purchase approximately one-third of our ammonia from various suppliers in the spot market with the remaining two-thirds either purchased through our ammonia supply agreement (the “ CF Ammonia Supply Agreement ”) with an affiliate of CF Industries Inc. (“ CF ”) or produced internally at our Faustina, Louisiana location.
We purchase approximately one-third of our ammonia from various suppliers in the spot market with the remaining two-thirds either purchased through our ammonia supply agreement (the “ CF Ammonia Supply Agreement ”) with an affiliate of CF Industries Inc.
In 2022, Mosaic Fertilizantes purchased 1.5 million tonnes of phosphate-based products, primarily MicroEssentials ® , from our Phosphates segment, and 2.3 million tonnes of potash products from our Potash segment and Canpotex.
In 2023, Mosaic Fertilizantes purchased 1.4 million tonnes of phosphate-based products, primarily MicroEssentials ® , from our Phosphates segment, and 2.1 million tonnes of potash products from our Potash segment and Canpotex.
In 2022, we sold our warehouse facility in Savage, Minnesota. 14 Table of Conten t In addition to the facilities that we own, our U.S. distribution operations also include leased distribution space or contractual throughput agreements in other key geographical areas including California, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, Texas and Wisconsin.
We also own warehouse distribution facilities in: Rosemount, Minnesota; Pekin, Illinois; and Henderson, Kentucky. In addition to the facilities that we own, our U.S. distribution operations also include leased distribution space or contractual throughput agreements in other key geographical areas including California, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, Texas and Wisconsin.
Potash Segment – We sell potash throughout North America and internationally, principally as fertilizer, but also for use in industrial applications and, to a lesser degree, as animal feed ingredients. We account for approximately 35% of estimated North American annual potash production.
We account for approximately 80% of estimated North American annual production of concentrated phosphate crop nutrients. 1 Table of Co ntent Potash Segment – We sell potash throughout North America and internationally, principally as fertilizer, but also for use in industrial applications and, to a lesser degree, as animal feed ingredients.
In addition, our ownership in the Miski Mayo Mine allows us to supplement our overall phosphate rock needs. We also sell approximately 25% of Miski Mayo Mine production to third parties. MWSPC enables us to not only further diversify our sources of phosphates but also improve our access to key agricultural countries in Asia and the Middle East.
In addition, our ownership in the Miski Mayo Mine allows us to supplement our overall phosphate rock needs. MWSPC enables us to not only further diversify our sources of phosphates but also improve our access to key agricultural countries in Asia.
These operations provide our Phosphates and Potash segments access to key markets outside of North and South America and serve as a marketing agent for our Phosphates segment. In 2022, the India and China operations purchased 523,110 tonnes of phosphate-based products from our Phosphates segment and MWSPC, and 1,344,926 tonnes of potash products from our Potash segment and Canpotex.
These operations provide our Phosphates and Potash segments access to key markets outside of North and South America and serve as a marketing agent for our Phosphates segment. In 2023, the India and China operations purchased 341,047 tonnes of phosphate-based products from our Phosphates segment and MWSPC, and 742,528 tonnes of potash products from our Potash segment and Canpotex.
There are also approximately 198 salaried and 493 hourly employees at the Miski Mayo Mine, of which we own 75% and its results are consolidated within our results of operations. Labor Relations As of December 31, 2022: • We had ten collective bargaining agreements with unions covering certain hourly employees in the U.S. and Canada.
This includes approximately 289 salaried and 424 hourly employees at the Miski Mayo Mine, of which we own 75% and its results are consolidated within our results of operations. Labor Relations As of December 31, 2023: • We had eight collective bargaining agreements with unions covering certain hourly employees in the U.S. and Canada.
However, we have not experienced a significant work stoppage in many years and historically have had good labor relations. 17 Table of Conten t Information Available on our Website Our Annual Report Form on 10-K ( “ Form 10-K ” ) , Quarterly Reports on Form 10-Q ( “ Form 10-Q ” ) , Current Reports on Form 8-K (“ Form 8-K ”), and amendments thereto, filed with the Securities and Exchange Commission (“ SEC ”) pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder are made available free of charge on our website (www.mosaicco.com) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Information Available on our Website Our Annual Report Form on 10-K (“ Form 10-K ” ) , Quarterly Reports on Form 10-Q (“ Form 10-Q ”), Current Reports on Form 8-K (“ Form 8-K ”), and amendments thereto, filed with the Securities and Exchange Commission (“ SEC ”) pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder are made available free of charge on our website (www.mosaicco.com) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
We have a 75% economic interest in the Miski Mayo Mine, which allows us to supplement our other produced rock to meet our overall fertilizer production needs and is the primary source of rock for our Louisiana operations.
We have a 75% economic interest in the Miski Mayo Mine, which allows us to supplement our other produced rock to meet our overall fertilizer production needs and is the primary source of rock for our Louisiana operations. We have the right to use or sell to third parties 75% of the Miski Mayo Mine’s annual production. See “Item 2.
Ammonia operations commenced in late 2016 and on December 1, 2018, MWSPC commenced commercial operations of the phosphate plant, thereby bringing the entire project to the commercial production phase. Phosphate production will ramp-up until it reaches an expected 3.0 million tonnes in annual production capacity. Actual phosphate production was 2.6 million tonnes in 2022.
Ammonia operations commenced in late 2016 and on December 1, 2018, MWSPC commenced commercial operations of the phosphate plant, thereby bringing the entire project to the commercial production phase and an annual production capacity of 3.0 million tonnes. Actual phosphate production was 3.1 million tonnes in 2023.
Our international operations are subject to risks from changes in foreign currencies, or government policy, which can affect local farmer economics. OTHER MATTERS Employees We had 13,570 employees as of December 31, 2022, consisting of approximately 9,868 salaried and 3,702 hourly employees.
Our international operations are subject to risks from changes in foreign currencies, or government policy, which can affect local farmer economics. OTHER MATTERS Employees We had 14,049 employees as of December 31, 2023, consisting of approximately 10,352 salaried and 3,697 hourly employees.
Mosaic supports membership in numerous professional associations and encourages participation in work-related external networking groups. • In 2022, Mosaic continued its pilot programs to help employees gain the knowledge and skills that we believe will be necessary for the next evolution of our business.
Mosaic supports membership in numerous professional associations and encourages participation in work-related external networking groups • In 2023, Mosaic continued its programs to help employees gain the knowledge and skills that we believe will be necessary for the next evolution of our business. Like any company, Mosaic experiences turnover and the need to replace talent related to retirement and succession.
In 2022, Mosaic Fertilizantes sold approximately 9.4 million tonnes of crop nutrient products and accounted for approximately 22% of fertilizer shipments in Brazil. We have the capability to annually produce approximately 4.5 million tonnes of phosphate- and potash-based crop nutrients and animal feed ingredients.
In 2023, Mosaic Fertilizantes sold approximately 9.7 million tonnes of crop nutrient products and accounted for approximately 20% of fertilizer shipments in Brazil. We have the capability to annually produce approximately 4.5 million tonnes of phosphate- and potash-based crop nutrients and animal feed ingredients. Crop nutrient products produced are marketed to crop nutrient manufacturers, distributors, retailers and farmers.
The annual operational capacity reported in the table above can exceed the annualized proven peaking capacity until the proving run has been completed. Our entitlement percentage of Canpotex is 36.2%.
The annual operational capacity of a mine reported in the table above can exceed the annualized proven peaking capacity until the proving run or engineering audit has been completed. Subject to Note (g), our current entitlement percentage of Canpotex is 36.2%.
We have long-term time charters on two ocean-going tugs/barges and one ocean-going vessel that transports molten sulfur from the Texas terminals to Tampa. We then further transport by truck to our Florida phosphate plants.
We have long-term time charters on two ocean-going tugs/barges and one ocean-going vessel that transports molten sulfur from the Texas terminals to Tampa. We then further transport by truck to our Florida phosphate plants. Our sulfur logistic assets also include a large fleet of leased railcars that supplement our marine sulfur logistic system.
Alternative transportation and terminaling facilities might not have sufficient capacity to fully serve all of our facilities in the event of a disruption to existing transportation or terminaling facilities.
Alternative transportation and terminaling facilities might not have sufficient capacity to fully serve all of our facilities in the event of a disruption to existing transportation or terminaling facilities. Changes in the price of ammonia or disruptions to ammonia transportation or terminaling could have a material impact on our business.
Prior to Mosaic, he was a partner at an international law firm where he focused his practice on mergers and acquisitions, public and private securities offerings and public company compliance matters, as well as general business advising. Mr.
Most recently, he was the Vice President - Growth and Development where he helped drive strategic vision across the organization. Prior to Mosaic, he was a partner at an international law firm where he focused his practice on mergers and acquisitions, public and private securities offerings and public company compliance matters, as well as general business advising. Mr.
Muriate of potash (“ MOP ”) is the primary source of potassium for the crop nutrient industry. Red MOP has traces of iron oxide. The granular and standard grade red MOP products are well suited for direct fertilizer application and bulk blending. White MOP has a higher percent potassium oxide (“ K 2 O ”).
MOP is the primary source of potassium for the crop nutrient industry in Brazil. Red MOP has traces of iron oxide. The granular and standard grade red MOP products are well-suited for direct fertilizer application and bulk blending.
DAP is a solid granular product that is applied directly or blended with other solid plant nutrient products, such as urea and potash. • Monoammonium Phosphate (11-52-0): Monoammonium Phosphate (“ MAP ”) is the second most widely used high-analysis phosphate crop nutrient and the fastest growing phosphate product worldwide.
DAP is a solid granular product that is applied directly or blended with other solid plant nutrient products, such as urea and potash. • Monoammonium Phosphate (11-52-0): Monoammonium Phosphate (“ MAP ”) is the second most widely used high-analysis phosphate crop nutrient. MAP is also produced by first combining phosphoric acid with anhydrous ammonia in a reaction vessel.
The phosphoric acid produced at Uberaba is used to produce MAP, TSP and DCP. We produced approximately 2.8 million tonnes of concentrated phosphate crop nutrients during 2022 which accounted for approximately 49% of estimated Brazilian annual production. Phosphate Rock Phosphate rock is the key mineral used to produce phosphate crop nutrients and animal feed product.
We produced approximately 2.6 million tonnes of concentrated phosphate crop nutrients during 2023 which accounted for approximately 48% of estimated Brazilian annual production. Phosphate Rock Phosphate rock is the key mineral used to produce phosphate crop nutrients and animal feed product.
Of these employees, approximately 5% are covered under agreements that expire in 2023. All are expected to collectively bargain for new contracts in 2023. • We had agreements with 35 unions covering all employees in Brazil. More than one agreement may govern our relations with each of these unions. In general, the agreements are renewable on an annual basis.
Of these employees, approximately 33% are covered under agreements that expire in 2024. All are expected to collectively bargain for new contracts in 2024. 17 Table of Co ntent • We had agreements with 35 unions covering all employees in Brazil. More than one agreement may govern our relations with each of these unions.
We consumed approximately 1.2 million long tons of sulfur for our own production during 2022. We purchase approximately 13% of the volume under annual supply agreements from oil and natural gas refiners, who are required to remove or recover sulfur during the refining process. The remaining 87% is purchased in the spot market.
We purchase approximately 21% of the volume under annual supply agreements from oil and natural gas refiners, who are required to remove or recover sulfur during the refining process. The remaining 79% is purchased in the spot market.
Our Florida ammonia needs are currently supplied under multi-year contracts with both domestic and offshore producers. Ammonia for our Bartow and Riverview plants is terminaled through owned ammonia facilities at the Port of Tampa and Port Sutton, Florida.
(“ CF ”) or produced internally at our Faustina, Louisiana location. 6 Table of Co ntent Our Florida ammonia needs are currently supplied under multi-year contracts with both domestic and offshore producers. Ammonia for our Florida plants is terminaled through owned ammonia facilities at the Port of Tampa and Port Sutton, Florida.
Freeland was named Senior Vice President and Chief Financial Officer in June 2018. Prior to joining Mosaic, Mr. Freeland served as Executive Vice President and Chief Financial Officer of Dynegy Inc. from July 2011 until Dynegy’s merger with Vistra Energy Corp. in April 2018. Mr.
Prior to joining Mosaic, Mr. Freeland served as Executive Vice President and Chief Financial Officer of Dynegy Inc. from July 2011 until Dynegy’s merger with Vistra Energy Corp. in April 2018. Mr. Freeland was responsible for Dynegy’s financial affairs, including finance and accounting, treasury, tax and banking and credit agency relationships. Prior to joining Dynegy, Mr.
No “family relationships,” as that term is defined in Item 401(d) of Regulation S-K, exist among any of the listed officers or between any such officer and any member of our board of directors.
Our executive officers are generally elected to serve until their respective successors are elected and qualified or until their earlier death, resignation or removal. No “family relationships,” as that term is defined in Item 401(d) of Regulation S-K, exist among any of the listed officers or between any such officer and any member of our Board of Directors.
Crop nutrient products produced are marketed to crop nutrient manufacturers, distributors, retailers and farmers. 11 Table of Conten t In addition to producing crop nutrients, Mosaic Fertilizantes purchases phosphates, potash and nitrogen products which are either used to produce blended crop nutrients (“ Blends ”) or for resale.
In addition to producing crop nutrients, Mosaic Fertilizantes purchases phosphates, potash and nitrogen products which are either used to produce blended crop nutrients (“ Blends ”) or for resale.

… 114 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

104 edited+22 added−18 removed88 unchanged
Biggest changeAn accident could also result in property damage or shutdown of our facilities, or cause us to expend significant amounts to remediate safety issues or to repair damaged facilities. 27 Table of Conten t Regulatory Risks The environmental, health and safety regulations and requirements to which we are subject may have a material adverse effect on our business, financial condition and results of operations.
Biggest changeRegulatory Risks Environmental, health and safety regulations and requirements to which we are subject may have a material adverse effect on our business, financial condition and results of operations. We are subject to numerous environmental, health and safety laws and regulations (“ EHS laws ”) in countries in which we operate.
See the “Key Factors that can Affect Results of Operations and Financial Condition” and “Potash Net Sales and Gross Margin” sections of our Management’s Analysis in this Form 10-K and the Esterhazy closure costs in Note 26 of this Form 10-K, which sections are incorporated herein by reference, for a discussion of costs, risks and other information relating to the brine inflows.
See “Key Factors that can Affect Results of Operations and Financial Condition” and “Potash Net Sales and Gross Margin” sections of our Management’s Analysis in this Form 10-K and the Esterhazy closure costs in Note 26 of this Form 10-K, which sections are incorporated herein by reference, for a discussion of costs, risks and other information relating to the brine inflows.
The most important of these factors are: • weather and field conditions (particularly during periods of traditionally high crop nutrients application); • quantities of crop nutrients imported and exported; • current and projected inventories and prices, which are heavily influenced by U.S. exports and world-wide markets; and • governmental policies, including farm and biofuel policies, which may directly or indirectly influence the number of acres planted, the level of inventories, the mix of crops planted or crop prices or otherwise negatively affect our operating results.
The most important factors are: • weather and field conditions (particularly during periods of traditionally high crop nutrients application); • quantities of crop nutrients imported and exported; • current and projected inventories and prices, which are heavily influenced by U.S. exports and world-wide markets; and • governmental policies, including farm and biofuel policies, which may directly or indirectly influence the number of acres planted, the level of inventories, the mix of crops planted or crop prices or otherwise negatively affect our operating results.
Item 1A. Risk Factors . Our business, financial condition or results of operations could be materially adversely affected by any of the risks and uncertainties described below. Operational Risks Our operating results are highly dependent upon and fluctuate based upon business and economic conditions and governmental policies affecting the agricultural industry in which we or our customers operate.
Item 1A. Risk Factors . Our business, financial condition or results of operations could be materially adversely affected by any of the risks and uncertainties described below. Operational Risks Our operating results are highly dependent upon and fluctuate based upon business, economic and other conditions and governmental policies affecting the agricultural industry in which we or our customers operate.
For example, oil refineries that supply sulfur to us may suspend operations as a result of a hurricane, and incoming shipments of ammonia can be delayed, disrupting production at our Florida or Louisiana facilities and delivery of our products. In the second half of 2021, we experienced production impacts related to Hurricane Ida on our Louisiana operations.
For example, oil refineries that supply sulfur to us may suspend operations as a result of a hurricane, and incoming shipments of ammonia can be delayed, disrupting production at our Florida or Louisiana facilities and delivery of our products. In the second half of 2021, we experienced production impacts related to Hurricane Ida at our Louisiana operations.
In contrast, high prices may lead our customers and farmers to delay purchasing decisions in anticipation of future lower prices, thus impacting our sales volumes. Due to reduced market demand, depressed agricultural economic conditions and other factors, we and our predecessors have at various times suspended or curtailed production at some of our facilities.
In contrast, high prices may lead our customers and farmers to delay purchasing decisions in anticipation of future lower prices, thus impacting our sales volumes. Due to reduced market demand, depressed agricultural economic conditions and other factors, we have at various times suspended or curtailed production at some of our facilities.
In 2013, we entered into an agreement to form MWSPC, a joint venture in which we hold a 25% interest, to develop a mine and chemical complexes for an estimated $8.0 billion that produces phosphate fertilizers and other downstream products in the Kingdom of Saudi Arabia.
In 2013, we entered into an agreement to form MWSPC, a joint venture in which we hold a 25% interest, to develop a mine and chemical complexes for an estimated $8.0 billion cost, that produces phosphate fertilizers and other downstream products in the Kingdom of Saudi Arabia.
In addition, the other member of Canpotex is among our competitors who may, in the future, i ndependently expand its potash production capacity at a time when each Canpotex member’s respective shares of Canpotex sales is based upon that member’s respective proven peaking capacity for producing potash.
The other member of Canpotex is among our competitors who may, in the future, i ndependently expand its potash production capacity at a time when each Canpotex member’s respective shares of Canpotex sales is based upon that member’s respective proven peaking capacity for producing potash.
We compete with a number of producers throughout the world, including state-owned and government-subsidized entities. Some of these entities have greater total resources than we do, and may be less dependent on earnings from crop nutrients sales than we are.
We compete with a number of producers throughout the world, including state-owned and government-subsidized entities. Some have greater total resources than we do, and may be less dependent on earnings from crop nutrients sales than we are.
For example, In Florida, local community involvement has become an increasingly important factor in the permitting process for mining companies, and various counties and other parties in Florida have in the past filed and continue to file lawsuits challenging the issuance or renewal of some of the permits we require.
For example, i n Florida, local community involvement has become an increasingly important factor in the permitting process for mining companies, and various counties and other parties in Florida have in the past filed and continue to file lawsuits challenging the issuance or renewal of some of the permits we require.
These requirements may include: • Increased levels of future investments and expenditures for environmental controls at ongoing operations, which will be charged against income from future operations; increased levels of the financial assurance requirements to which we are subject, and increased efforts or costs to obtain permits or denial of permits. • New or interpretations of existing statutes or regulations that impose new or more stringent standards, restrictions or liabilities related to elevated levels of naturally-occurring radiation that arise on formerly mined land and other matters that could increase our expenses, capital requirements or liabilities or adversely affect our business, liquidity or financial condition.
These requirements may include: 28 Table of Co ntent • Increased levels of future investments and expenditures for environmental controls at ongoing operations, which will be charged against income from future operations; increased levels of the financial assurance requirements to which we are subject, and increased efforts or costs to obtain permits or denial of permits. • New or interpretations of existing statutes or regulations that impose new or more stringent standards, restrictions or liabilities related to elevated levels of naturally-occurring radiation that arise on formerly mined land and other matters that could increase our expenses, capital requirements or liabilities or adversely affect our business, liquidity or financial condition.
Examples of the types of events that could result in a disruption at one of these facilities include: adverse weather; strikes or other work stoppages; civil unrest; deliberate, malicious acts, including acts of terrorism and armed conflict; political or economic instability; cyberattacks; changes in permitting, financial assurance or certain environmental, health and safety laws or other changes in the regulatory environment in which we operate; legal and regulatory proceedings; our relationships with the other member of Canpotex and the other joint ventures in which we participate and their or our exit from participation in such joint ventures; other changes in our commercial arrangements with unrelated third parties; brine inflows at our 23 Table of Conten t Esterhazy, Saskatchewan mine or our other shaft mines; mechanical failure and accidents or other failures occurring in the course of operating activities, including at our gypstacks, clay settling areas and tailing dams; accidents occurring in the course of operating activities; lack of truck, rail, barge or ship transportation; and other factors.
Examples of the types of events that could result, and have resulted, in a disruption at these facilities include: adverse weather; strikes or other work stoppages; civil unrest; deliberate, malicious acts, including acts of terrorism and armed conflict; political or economic instability; cyberattacks; changes in permitting, financial assurance or certain environmental, health and safety laws or other changes in the regulatory environment in which we operate; legal and regulatory proceedings; our relationships with the other member of Canpotex and the other joint ventures in which we participate and their or our exit from participation in such joint ventures; other changes in our commercial arrangements with unrelated third parties; brine inflows at our Esterhazy, Saskatchewan mine or our other shaft mines; mechanical failure and accidents or other failures occurring in the course of operating activities, including at our gypstacks, clay settling areas and tailing dams; accidents occurring in the course of operating activities; lack of truck, rail, barge or ship transportation; and other factors.
As a result, crop nutrient prices and volumes have been, and are expected to continue to be, volatile. This price and volume volatility may cause our results of operations to fluctuate and potentially deteriorate.
As a result, crop nutrient prices and volumes have been, and are expected to continue to be, volatile. This volatility may cause our results of operations to fluctuate and potentially deteriorate.
The international market for crop nutrients is influenced by such factors as the relative value of the U.S. dollar and its impact upon the cost of importing crop nutrients, foreign agricultural policies, including subsidy policies, the existence of, or changes in, import or foreign currency exchange barriers in certain foreign markets, changes in the hard currency demands of certain countries and other regulatory policies of foreign governments, as well as the laws and policies of the U.S. affecting foreign trade and investment, including use of tariffs.
The international market for crop nutrients is influenced by such 21 Table of Co ntent factors as the relative value of the U.S. dollar and its impact upon the cost of importing crop nutrients, foreign agricultural policies, including subsidy policies, the existence of, or changes in, import or foreign currency exchange barriers in certain foreign markets, changes in the hard currency demands of certain countries and other regulatory policies of foreign governments, as well as the laws and policies of the U.S. affecting foreign trade and investment, including use of tariffs.
Cyberattacks could disrupt our operations and have a material adverse impact on our business. As a global company, we utilize and rely upon information technology systems in many aspects of our business, including internal and external communications and the management of our accounting, financial, production and supply chain functions.
Cyberattacks could disrupt our operations and have a material adverse impact on our business. We utilize and rely upon information technology systems in many aspects of our business, including internal and external communications and the management of our accounting, financial, production and supply chain functions.
Natural resource extraction is an important part of the economy in Peru, and, in the past, there have been protests against other natural resource operations in Peru. There remain numerous social conflicts that exist within the natural resource sector in Peru. As a result, there is potential for active protests against natural resource extraction companies.
Natural resource extraction is an important part of the economy in Peru, and, in the past, there have been protests against other natural resource operations in Peru. There remain numerous social conflicts that exist within the natural resource extraction sector in Peru, and there is potential for active protests against natural resource extraction companies.
Accidents or equipment failures occurring in the course of our operating activities could result in significant liabilities, interruptions or shutdowns of facilities or the need for significant safety or other expenditures. We engage in mining and industrial activities that can result in serious accidents or experience equipment failures.
Accidents or equipment failures occurring in the course of our operating activities could result in significant liabilities, interruptions or shutdowns of facilities or the need for significant safety or other expenditures. We engage in mining and industrial activities, including rail transportation, that can result in serious accidents or experience equipment failures.
Our success will continue to depend on our ability to attract and retain highly qualified and motivated employees. We believe our continued success depends on the collective abilities and efforts of our employees.
Our success will continue to depend on our ability to attract and retain highly qualified and motivated employees. Our continued success depends on the collective abilities and efforts of our employees.
If we do not successfully participate in continuing industry consolidation, our ability to compete successfully could be adversely affected and result in the loss of customers or an uncompetitive cost structure, which could adversely affect our sales and profitability. Our strategy for managing market and interest rate risk may not be effective.
If we 30 Table of Co ntent do not successfully participate in continuing industry consolidation, our ability to compete successfully could be adversely affected and result in the loss of customers or an uncompetitive cost structure, which could adversely affect our sales and profitability. Our strategy for managing market and interest rate risk may not be effective.
We also hold minority ownership interests in other companies that are not controlled by us. The operations and results of MWSPC will be, and the operations or results of some of the other companies are, significant to us, and their operations can affect our earnings.
We also hold minority ownership interests in other companies that are not controlled by us. The operations and results of MWSPC and some of the other companies are significant to us, and their operations can affect our earnings.
As a result, we are subject to numerous risks and uncertainties relating to international sales and operations, including: • difficulties and costs associated with complying with a wide variety of complex laws, treaties and regulations; • unexpected changes in regulatory environments; • increased government ownership and regulation of the economy in the countries we serve; • political and economic instability, including the possibility for terrorism, armed conflict, civil unrest, inflation and adverse economic conditions resulting from governmental attempts to reduce inflation, such as imposition of higher interest rates and wage and price controls; • unpredictable tax audit practices of various governments; • nationalization of properties by foreign governments; 24 Table of Conten t • the imposition of tariffs, exchange controls, trade barriers or other restrictions, or government-imposed increases in the cost of resources and materials necessary for the conduct of our operations or the completion of strategic initiatives, including with respect to our joint ventures; and • currency exchange rate fluctuations between the U.S. dollar and foreign currencies, particularly the Brazilian real and the Canadian dollar.
As a result, we are subject to numerous risks and uncertainties relating to international sales and operations, including: • difficulties and costs associated with complying with a wide variety of complex laws, treaties and regulations; • unpredictable changes in regulatory environments; • increased government regulation of the economy in the countries we serve; • political and economic instability, inflation and adverse economic conditions resulting from governmental attempts to reduce inflation, such as imposition of higher interest rates and wage and price controls; • unpredictable tax audit practices of various governments; • nationalization of properties by foreign governments; • the imposition of tariffs, exchange controls, trade barriers or other restrictions, or government-imposed increases in the cost of resources and materials necessary for the conduct of our operations or the completion of strategic initiatives, including with respect to our joint ventures; and • currency exchange rate fluctuations between the U.S. dollar and foreign currencies, particularly the Brazilian real and the Canadian dollar.
Our most important products are concentrated phosphate crop nutrients, including diammonium phosphate, or DAP, monoammonium phosphate, or MAP, MicroEssentials ® and muriate of potash, or MOP. We sell most of our DAP, MAP and MOP in the form of global commodities. Our sales of these products face intense global competition from other crop nutrient producers.
Our most important products are concentrated phosphate crop nutrients, including diammonium phosphate, or DAP, monoammonium phosphate, or MAP, MicroEssentials ® and muriate of potash, or MOP. We sell most of our DAP, MAP and MOP as global commodities. Our sales of these products face intense global competition from other crop nutrient producers.
The extent to which current global or local economic and financial conditions, changes in global or local economic and financial conditions, or other factors may cause delays or cancellation of some of these ongoing or planned projects, or result in the acceleration of existing or new projects, is unclear.
The extent to which current 31 Table of Co ntent global or local economic and financial conditions, changes in global or local economic and financial conditions, or other factors may cause delays or cancellation of some of these ongoing or planned projects, or result in the acceleration of existing or new projects, is unclear.
As we become more dependent on information technologies to conduct our operations, and as the number and sophistication of cyberattacks increase, the risks associated with cyber security increase. These risks apply to us, our employees, and to third parties on whose systems we rely for the conduct of our business.
As we become more dependent on information technologies to conduct our operations, and as the number and sophistication of cyberattacks increase, the risks associated with cybersecurity increase. These risks apply to us, our employees, and to third parties on whose systems we rely to conduct our business.
Our quarterly financial results can vary significantly from one year to the next due to weather-related shifts in planting schedules and purchasing patterns. If seasonal demand exceeds our projections, we will not have enough product and our customers may acquire products from our competitors, which would negatively impact our profitability.
Our quarterly financial results can vary significantly from one year to the next due to weather-related shifts in planting schedules and purchasing patterns. If seasonal demand exceeds our projections, we will not have enough product, which would negatively impact our profitability.
Adverse weather conditions, including the impact of hurricanes, and excess heat, cold, snow, rainfall and drought, have in the past, and may in the future, adversely affect our operations, and result in increased costs, decreased sales or production and potential liabilities.
Adverse weather conditions, including hurricanes, and excess heat, cold, snow, rainfall and drought, have in the past, and may in the future, adversely affect our operations, and result in increased costs, decreased sales or production and potential liabilities. Adverse weather conditions have in the past and may in the future adversely affect our operations, particularly our Phosphates operations.
Alternative compliance methods include providing credit support in the form of cash escrows or trusts, surety bonds from surety or insurance companies, letters of credit from banks, or other forms of financial instruments or collateral to satisfy the financial assurance requirements. Use of alternative means of financial assurance imposes additional expense on us.
Alternative compliance methods include providing credit support in the form of cash escrows or trusts, surety bonds from surety or insurance companies, letters of credit from banks, or other forms of financial instruments or collateral to satisfy the financial assurance requirements. Use of alternative means of financial assurance imposes additional expense on us and could affect our liquidity.
Environmental Protection Agency (“ EPA ”) and the Louisiana Department of Environmental Quality (“ LDEQ ”) also have similar requirements for water management objectives as outlined in our U.S. Resource Conservation and Recovery Act (“ RCRA ”) CD ’ s.
Environmental Protection Agency (“ EPA ”) and the Louisiana Department of Environmental Quality also have similar requirements for water management objectives as outlined in our U.S. Resource Conservation and Recovery Act (“ RCRA ”) Consent Decree ’ s.
We rely heavily upon truck, rail, tug, barge and ocean freight transportation to obtain the raw materials we need to distribute raw materials among our mines and concentrates facilities and to deliver our products to our customers. In addition, the cost of transportation is an important part of the final sale price of our products.
We rely heavily upon truck, rail, tug, barge and ocean freight transportation to obtain raw materials needed at our mines and concentrates facilities and to deliver our products to our customers. In addition, the cost of transportation is an important part of the final sale price of our products.
Drought can reduce farmers’ crop yields and the uptake of phosphates and potash, reducing the need for application of additional phosphates and potash for the next planting season. Drought can also lower river levels, adversely affecting delivery of our products to our customers. Climate change could adversely affect us.
Drought can reduce farmers’ crop yields and the uptake of phosphates and potash, reducing the need for application of additional phosphates and potash for the next planting season. Drought can also lower river levels, adversely affecting delivery of our products to our customers.
If our safety procedures are not effective, an accident involving these other hazardous chemicals could result in serious injuries or death, or result in the shutdown of our facilities. We use sulfuric acid in the production of concentrated phosphates in our Florida and Louisiana operations and our Brazil operations.
If our safety procedures are not effective, an accident involving these other hazardous chemicals could result in serious injuries or death, or result in the shutdown of our facilities. We use sulfuric acid to produce concentrated phosphates in our Florida and Louisiana operations and our Brazil operations. We also use or produce other hazardous chemicals at some of our facilities.
We use tailings, sediments and water to manage residual materials generated by our facilities, including Brazilian mining operations.
We use tailings, sediments and water dams and other impoundments to manage residual materials generated by our facilities, including Brazilian mining operations.
In addition, to the extent climate change restrictions imposed in countries where our competitors operate, such as India, former Soviet Union countries or Morocco, are less stringent than in the U.S., Canada or Brazil our competitors could gain cost or other competitive advantages over us.
In addition, to the extent climate change restrictions imposed in countries where our competitors operate, such as India, China, Russia, Belarus or Morocco, are less stringent than in the U.S., Canada or Brazil, our competitors could gain cost or other competitive advantages over us.
To reduce economic risk and volatility on expected cash flows that are denominated in the Canadian dollar and Brazilian real, we use financial instruments that may include forward contracts, options or collars when unable to naturally offset the exposures.
To reduce economic risk and volatility on expected cash flows that are denominated in the Canadian dollar and Brazilian real, we use financial instruments that may include forward contracts, options or collars when unable to naturally offset the exposures. Item 1B. Unresolved Staff Comments. None.
Severe climate change could impact our costs and operating activities, the location and cost of global grain and oilseed production, and the supply and demand for grains and oilseeds.
Severe 25 Table of Co ntent climate change could impact our costs and operating activities, the location and cost of global grain and oilseed production, and the supply and demand for grains and oilseeds.
We have not yet become subject to such results in the sulfur procurement markets, if it becomes necessary to procure sulfur at higher costs, and if we are unable to pass those costs on in our product prices, or if we are unable to procure sulfur at volumes necessary for our operations, such events could have a material adverse effect on our phosphate business, and/or our financial condition or operating results.
If it becomes necessary to procure sulfur at higher costs, and if we are unable to pass those costs on in our product prices, or if we are unable to procure sulfur at volumes necessary for our operations, such events could have a material adverse effect on our phosphate business, and/or our financial condition or operating results.
As a crop nutrient company producing and managing chemicals, we periodically have incurred and may incur liabilities and cleanup costs, under CERCLA and other environmental laws, with regard to our current or former facilities, adjacent or nearby third-party facilities or offsite disposal locations. Our operations are dependent on having the required permits and approvals from governmental authorities.
We periodically have incurred and may incur liabilities and cleanup costs, under CERCLA and other environmental laws, with regard to our current or former facilities, adjacent or nearby third-party facilities or offsite disposal locations. Our operations are dependent on having the required permits and approvals from governmental authorities.
Industry Risks Future product or technological innovation could affect our business. 32 Table of Conten t Future product or technological innovations by third parties, such as the development of seeds that require less crop nutrients, the development of substitutes for our products or developments in the application of crop nutrients, if they occur, could have the potential to adversely affect the demand for our products and our results of operations, liquidity and capital resources.
Future product or technological innovations by third parties, such as the development of seeds that require less crop nutrients, the development of substitutes for our products or developments in the application of crop nutrients, if they occur, could have the potential to adversely affect the demand for our products and our results of operations, liquidity and capital resources.
The Covid-19 pandemic could also have the effect of heightening many of the other risks described in this Item 1A of this Form 10-K. Unfavorable worldwide economic and market conditions could adversely affect our business, financial condition or operating results.
A public health event could also have the effect of heightening many of the other risks described in this Item 1A of this Form 10-K. Unfavorable worldwide economic and market conditions could adversely affect our business, financial condition or operating results.
The success of MWSPC will depend on, among other matters, the availability and affordability of necessary resources and materials and access to appropriate infrastructure, availability and affordability of transportation, operational decisions of MWSPC management, ability to operate without material disruption to the facilities, as well as the general economic and political stability of the region.
MWSPC is now operational, but the success of its operations depends on, among other matters, the availability and affordability of necessary resources and materials and access to appropriate infrastructure, availability and affordability of transportation, operational decisions of MWSPC management, ability to operate without material disruption to the facilities, as well as the general economic and political stability of the region.
Our results of operations may be adversely affected if these customers are unable to repay the trade credit from us or financing from their banks. Increases in prices for crop nutrient, other agricultural inputs and grain may increase this risk.
Our results of operations may be adversely affected if these customers are unable to repay the trade credit from us or financing from their banks. Increases in prices for crop nutrient, other agricultural inputs and grain may increase this risk. We extend trade credit to our customers throughout the world, in some cases for extended periods of time.
International market conditions and the success of our countervailing duty petitions, which are also outside of our control, may also significantly influence our operating results.
International market conditions and the effects of recent countervailing duty orders, which are also outside of our control, may also significantly influence our operating results.
The cost of delivery is a significant factor in the total cost to customers and farmers of crop nutrients. As a result, changes in transportation costs, or in customer expectations about them, can affect our sales volumes and prices. A disruption to our production, distribution or terminaling facilities could have a material adverse impact on our business.
Delivery costs are a significant factor in the total cost to customers. As a result, changes in transportation costs, or in customer expectations about them, may adversely affect our sales volumes and prices. A disruption at our production, distribution or terminaling facilities could have a material adverse impact on our business.
Heightened regulation on food and crop inputs (including crop nutrients) and environmental, health and safety issues in the U.S., Canada, China, Brazil, Paraguay and other countries where we operate can be expected to result in requirements that apply to us and our operations that may be more stringent than those described elsewhere in this report.
Heightened regulation on food and crop inputs (including crop nutrients) and environmental, health and safety issues in countries in which we operate can be expected to result in requirements that apply to us and our operations that may be more stringent than those described elsewhere in this report.
Accidents could cause us to expend significant amounts to remediate safety issues or to repair damaged facilities and could result in significant liabilities and/or impact on the financial performance of the Company, including material adverse effects on our results of operations, liquidity or financial condition. For example: • Some of our facilities are subject to potential damage from seismic activity.
Accidents could cause us to expend significant amounts to remediate safety issues or to repair damaged facilities and could result in significant liabilities and/or impact on the financial performance of the Company, including material adverse effects on our results of operations, liquidity or financial condition.
To the extent other producers of crop nutrients enjoy competitive advantages or are willing to accept lower profit levels, the price of our products, our sales volumes and our profits may be adversely affected.
To the extent other producers of crop nutrients enjoy competitive advantages or are willing to accept lower profit levels, the price of our products, our sales volumes and our profits may be adversely affected. Industry Risks Future product or technological innovation could affect our business.
During times of a strengthening dollar, our net earnings can be reduced due to transaction currency losses arising from these exposures of U.S. dollar denominated liabilities held in the Brazilian and Canadian entities and Brazilian real denominated assets held in U.S. entities.
During periods of local or global economic crises, local currencies may be devalued significantly against the U.S. dollar. During times of a strengthening dollar, our net earnings can be reduced due to transaction currency losses arising from these exposures of U.S. dollar denominated liabilities held in the Brazilian and Canadian entities and Brazilian real denominated assets held in U.S. entities.
In contrast, we and other crop nutrient producers generally produce our products throughout the year. As a result, we and/or our customers generally build inventories during the low demand periods of the year in order to provide timely product availability during the peak sales seasons.
As a result, we and our customers generally build inventories during the low demand periods of the year in order to provide timely product availability during the peak sales seasons.
Additionally, water treatment costs tend to increase significantly following excess rainfall from hurricanes or other adverse weather. Some of our Florida and Louisiana facilities have had, and others could have, high water levels that have required, or may require, treatment.
In the past, hurricanes have resulted in physical damage to our facilities in Florida and Louisiana. Additionally, water treatment costs tend to increase significantly following excess rainfall. Some of our Florida and Louisiana facilities have had, and others could have, high water levels that have required, or may require, treatment.
Under accounting principles generally accepted in the U.S. ( “ GAAP ” ), we review goodwill for impairment on an annual basis or more frequently if events or circumstances indicate that their carrying value may not be recoverable.
We may incur significant non-cash charges if our goodwill or long-lived assets become impaired in the future. Under accounting principles generally accepted in the U.S. ( “ GAAP ” ), we review goodwill for impairment on an annual basis or more frequently if events or circumstances indicate that their carrying value may not be recoverable.
Changes in tax laws or regulations or their interpretation, or exposure to additional tax liabilities, could materially adversely affect our operating results and financial condition. We are subject to taxes, including income taxes, resource taxes and royalties, and non-income based taxes in the U.S., Canada, China, Brazil and other countries where we operate.
Changes in tax laws or regulations or their interpretation, or exposure to additional tax liabilities, could materially adversely affect our operating results and financial condition. 33 Table of Co ntent We are subject to taxes, including income taxes, resource taxes and royalties, and non-income based taxes in countries where we operate.
Our businesses are affected by fluctuations in market prices for our products, the purchase price of natural gas, ammonia and sulfur consumed in operations, freight and shipping costs, foreign currency exchange rates and interest rates. We periodically enter into derivatives and forward purchase contracts to mitigate some of these risks.
Our businesses are affected by fluctuations in market prices for our products, the purchase price of key inputs to operations, freight and shipping costs, foreign currency exchange rates and interest rates. We periodically enter into derivatives and forward purchase contracts to mitigate some of these risks. However, our strategy may not be successful in minimizing our exposure to these fluctuations.
Additionally, we become increasingly exposed to risk due to weather and crop growing conditions, fluctuations in crop nutrient prices, commodity prices or foreign currencies, and other factors that influence the price, supply and demand for agricultural commodities.
Additionally, we become increasingly exposed to risk due to weather and crop growing conditions, fluctuations in crop nutrient prices, commodity prices or foreign currencies, and other factors that influence the price, supply and demand for agricultural commodities. Significant defaults by our customers could adversely affect our financial condition and results of operations.
Our production costs have also increased due to higher prices for raw materials, including purchased nitrogen, sulfur and ammonia, as well as supply chain challenges, including increased costs and delays caused by transportation and labor shortages. These adverse economic events have adversely affected, and may continue to adversely affect our operating results.
Our production costs have increased due to higher prices for raw materials, including purchased nitrogen, sulfur and ammonia, as well as supply chain challenges, including increased costs and delays caused by transportation and labor shortages.
Our potash mines at Colonsay, Saskatchewan, Carlsbad, New Mexico and our Esterhazy, Saskatchewan K3 mine (though not contiguous with the 26 Table of Conten t K1/K2 underground inflow region) are also subject to risks from the inflow of water as a result of our underground shaft mining operations.
Our potash mines at Colonsay, Saskatchewan, Carlsbad, New Mexico and our Esterhazy, Saskatchewan K3 mine (though not contiguous with the K1/K2 underground inflow region) are also subject to risks from inflow.
For 2022, we derived approximately 75% of our net sales from customers located outside of the U.S.
In 2023, we derived approximately 66% of our net sales from customers located outside of the U.S.
The impact of climate change on our operations and those of our customers and farmers remains uncertain. Scientists have hypothesized that the impacts of climate change could include changes in rainfall patterns, water shortages, changing sea levels, changing storm patterns and intensities, and changing temperature levels and that these changes could be severe. These impacts could vary by geographic location.
The impacts of climate change could include changes in rainfall patterns, water shortages, changing sea levels, changing storm patterns and intensities, and changing temperature levels and that these changes could be severe. These impacts could vary by geographic location.
Any disruption of operations at any one of these facilities has the possibility of significantly negatively affecting our production or our ability to distribute our products.
Any disruption of operations at any of these facilities may significantly negatively affect our production or our ability to distribute our products.
In addition, tax regulations and tax audit practices, currency exchange controls and other restrictions may also make it economically unattractive to: • distribute cash generated by our operations outside the U.S. to our stockholders; or • utilize cash generated by our operations in one country to fund our operations or repayments of indebtedness in another country or to support other corporate purposes.
In addition, tax regulations and tax audit practices, currency exchange controls and other restrictions may also make it economically unattractive to: • distribute cash generated by our operations outside the U.S. to our stockholders; or • utilize cash generated by our operations in one country to fund our operations or repayments of indebtedness in another country or to support other corporate purposes. 24 Table of Co ntent Our assets outside of North America are located in countries with volatile conditions, which could subject us and our assets to significant risks.
Reduced oil refinery operating rates in North America could have a material adverse impact on our business, financial condition or operating results. Reduced oil refinery operating rates in the U.S. and Canada could result in decreased availability of molten sulfur, which could increase costs of sulfur procurement or decrease availability of sulfur needed in our phosphate fertilizer production operations.
Reduced oil refinery operating rates in the U.S. and Canada could, and have resulted in, the past, in decreased availability of molten sulfur, which could increase costs of sulfur procurement or decrease availability of sulfur needed in our phosphate fertilizer production operations.
From time to time, our profitability has been and may in the future be adversely impacted by the price and availability of these key inputs and other energy costs.
Natural gas is also a significant energy source used in the potash solution mining process. From time to time, our profitability has been and may in the future be adversely impacted by the price and availability of these key inputs and other energy costs.
The functional currency for our Brazilian subsidiaries is the Brazilian real. However, we finance our Brazilian inventory purchases with U.S. dollar-denominated liabilities. The functional currency of several of our Canadian entities is the Canadian dollar. For those entities, sales are primarily denominated in U.S. dollars, but the costs are paid principally in Canadian dollars.
The functional currency of several of our Canadian entities is the Canadian dollar. For those entities, sales are primarily denominated in U.S. dollars, but the costs are paid principally in Canadian dollars. Canadian entities have significant U.S. dollar denominated intercompany loans and U.S. entities, with the U.S. dollar as functional currency, have Brazilian real denominated loans.
In addition, fire at one of our underground shaft mines could halt our operations at the affected mine while we investigate the origin of the fire or for longer periods for remedial work or otherwise. Our underground potash shaft mines at Esterhazy and Colonsay, Saskatchewan, Carlsbad, New Mexico and Taquari-Vassouras, Brazil are subject to risk from fire.
In addition, fire at one of our underground shaft mines could halt our operations at the affected mine or for longer periods for remedial work or otherwise. Our underground potash shaft mines are subject to risk from fire.
Our crop nutrient business is seasonal and varies based on application rates, which may result in carrying significant amounts of inventory and seasonal variations in working capital, and our inability to predict future seasonal crop nutrient demand accurately may result in excess inventory or product shortages. The use of crop nutrients is seasonal and varies based on application rates.
These adverse economic events have adversely affected, and may continue to adversely affect our operating results. 22 Table of Co ntent Our crop nutrient business is seasonal and varies based on application rates, which may result in carrying significant amounts of inventory and seasonal variations in working capital, and our inability to predict future seasonal crop nutrient demand accurately may result in excess inventory or product shortages.
We are subject to periodic audits by various levels of tax authorities in all countries where we have meaningful operations. The due process, audit and appeal practices and procedures of such authorities may vary significantly by jurisdiction, may be unpredictable (and unreliable) in nature and may result in significant risk to us.
The due process, audit and appeal practices and procedures of such authorities may vary significantly by jurisdiction, may be unpredictable (and unreliable) in nature and may result in significant risk to us.
We extend trade credit to our customers in the U.S. and throughout the world, in some cases for extended periods of time. In Brazil, where there are fewer third-party financing sources available to farmers, we also have several programs under which we guarantee customers’ financing from financial institutions that they use to purchase our products.
In Brazil, where there are fewer third-party financing sources available to farmers, we also have several programs under which we guarantee customers’ financing from financial institutions that they use to purchase our products.
Changes in the price or availability of these key inputs for production of finished goods have had, and could again have, a material adverse impact on our businesses. Fertilizer is a key input for production of our finished goods. Natural gas, ammonia and sulfur are key raw materials used in the manufacture of phosphate crop nutrient products.
Changes in 23 Table of Co ntent the price or availability of these key inputs for production of finished goods have had, and could again have, a material adverse impact on our businesses. Fertilizer is a key input for production of our blended finished goods products.
A significant seismic event at one our facilities or mines could result in serious injuries or death, or damage to or flooding of operations, or damage to adjoining properties or facilities of unrelated third parties. • Our underground potash shaft mines are subject to risk from fire.
Our Esterhazy mine and Louisiana facilities have experienced minor seismic events from time to time. A significant seismic event at one our facilities or mines could result in serious injuries or death, or damage to or flooding of operations, or damage to adjoining properties or facilities of unrelated third parties.
Natural gas is used as both a chemical feedstock and a fuel to produce anhydrous ammonia, which is a raw material used in the production of concentrated phosphate products. Natural gas is also a significant energy source used in the potash solution mining process.
Natural gas, ammonia and sulfur are key raw materials used in the manufacture of phosphate crop nutrient products. Natural gas is used as both a chemical feedstock and a fuel to produce anhydrous ammonia, which is a raw material used in the production of concentrated phosphate products.
If excess rainfall or hurricanes occur in coming years, our facilities may be required to take additional measures to manage process water to comply with existing or future requirements and these measures could potentially have a material effect on our business and financial condition. 25 Table of Conten t Adverse weather may also cause a loss of production and may disrupt our supply chain or adversely affect delivery of our products to our customers.
If adverse weather occurs in coming years, our facilities may be required to take additional measures to manage process water to comply with existing or future requirements and these measures could potentially have a material effect on our business and financial condition.
As a result, defaults on these existing purchase commitments because of the global or local economic and financial conditions or for other reasons could adversely affect our estimates of future selling prices and require additional inventory write-downs. We may incur significant non-cash charges if our goodwill or long-lived assets become impaired in the future.
Any such effect could be material. Our estimates of future selling prices reflect in part the purchase commitments we have from our customers. As a result, defaults on these existing purchase commitments because of the global or local economic and financial conditions or for other reasons could adversely affect our estimates of future selling prices and require additional inventory write-downs.
The failure of or a breach at any of our impoundments at any of our operations could cause severe property and environmental damage and loss of life, could result in the shut down or idling of our facilities and could have a material adverse effect on our results of operations. 30 Table of Conten t Legislation at both Brazilian federal and state levels has introduced new rules regarding tailings dam safety, construction, licensing and operations.
The failure of or a breach at any of our impoundments at any of our operations could cause severe property and environmental damage and loss of life, could result in the shut down or idling of our facilities and could have a material adverse effect on our results of operations.
Environmental, health and safety and food and crop laws and regulations to which we are subject may become more stringent over time. This could increase the effects on us of these laws and regulations, and the increased effects could be materially adverse to our business, operations, liquidity and/or results of operations.
This could increase the effects on us of these laws and regulations, and the increased effects could be materially adverse to our business, operations, liquidity and/or results of operations.
The legal and regulatory proceedings to which we are currently or may in the future be subject may, depending on the circumstances, result in monetary damage awards, fines, penalties, other liabilities, injunctions or other court or administrative rulings that interrupt, impede or otherwise materially affect our business operations or criminal sanctions. 28 Table of Conten t We have included additional information with respect to pending legal and regulatory proceedings in Note 23 of our Notes to Consolidated Financial Statements and in this Form 10-K in Part I, Item 3, “Legal Proceedings”.
The legal and regulatory proceedings to which we are currently or may in the future be subject may, depending on the circumstances, result in monetary damage awards, fines, penalties, other liabilities, injunctions or other court or administrative rulings that interrupt, impede or otherwise materially affect our business operations or criminal sanctions.
Competitive Risks Our competitive position could be adversely affected if we are unable to participate in continuing industry consolidation. Most of our products are readily available from a number of competitors, and price and other competition in the crop nutrient industry is intense. In addition, crop nutrient production facilities and distribution activities frequently benefit from economies of scale.
Most of our products are readily available from a number of competitors, and price and other competition in the crop nutrient industry is intense. In addition, crop nutrient production facilities and distribution activities frequently benefit from economies of scale. As a result, particularly during pronounced cyclical troughs, the crop nutrient industry has a long history of consolidation.
We have experienced cyberattacks but to our knowledge, we have not experienced any material breaches of our technology systems.
To our knowledge, we have not experienced any material cybersecurity 32 Table of Co ntent incidents of our technology systems.
Even if we are able to locate desirable opportunities, we may not be able to enter into transactions on economically acceptable terms.
In the future, we may not be able to find suitable companies to combine with, assets to purchase or joint venture or partnership opportunities to pursue. Even if we are able to locate desirable opportunities, we may not be able to enter into transactions on economically acceptable terms.
We have a majority interest in the joint venture entity operating the Miski Mayo Mine that supplies phosphate rock to us. We also have a minority joint venture investment in MWSPC, which operates a mine and chemical complexes that produce phosphate fertilizers and other downstream products in the Kingdom of Saudi Arabia.
We also have a minority joint venture investment in MWSPC, which operates a mine and chemical complexes that produce phosphate fertilizers and other downstream products in the Kingdom of Saudi Arabia. Volatile economic, market and political conditions may have a negative impact on our operations, operating results and financial condition.
Like many businesses, a significant number of our employees, including some of our most highly skilled employees with specialized expertise in general corporate matters, potash and phosphates operations, will be approaching retirement age throughout the next decade 31 Table of Conten t and beyond.
A significant number of our employees, including some of our most highly skilled employees with specialized expertise in general corporate matters, potash and phosphates operations, will approach retirement age throughout the next decade. In addition, we compete for a talented workforce with other businesses, particularly within the mining and chemicals industries, in general, and the crop nutrients industry, in particular.
Significant defaults by our customers could adversely affect our financial condition and results of operations. 34 Table of Conten t Due to the global nature of our operations, we are exposed to currency exchange rate changes, which may cause fluctuations in earnings and cash flows. Our primary foreign currency exposures are the Canadian dollar and Brazilian real.
Due to the global nature of our operations, we are exposed to currency exchange rate changes, which may cause fluctuations in earnings and cash flows. Our primary foreign currency exposures are the Canadian dollar and Brazilian real. The functional currency for our Brazilian subsidiaries is the Brazilian real. However, we finance our Brazilian inventory purchases with U.S. dollar-denominated liabilities.

… 64 more changes not shown on this page.

Item 2. Properties

Properties — owned and leased real estate

208 edited+32 added−17 removed214 unchanged
Biggest changeAt no point in the cavern development and mining process can a decision be made to mine or not mine the potash mineralization that is in contact with the mining solution. There is no control on what potash grade the mining solution dissolves to make a concentrate that is pumped to surface from the mining caverns for processing.
Biggest change(f) No cut-off grade is used to estimate mineral resources. This is because the solution mining method used at the Belle Plaine Facility is not selective. At no point in the cavern development and mining process can a decision be made to mine or not mine the potash mineralization that is in contact with the mining solution.
Titles, mineral rights, leases or options and acreage Mining rights in Brazil are governed by the Mining Code, Decree 227, dated February 27, 1967, and further regulation enacted by the ANM. All subsoil situated within Brazilian territory is deemed state property, with the mining activities subject to specific permits granted by the ANM.
Titles, mineral rights, leases or options and acreage Mining rights in Brazil are governed by the Mining Code, Decree 227, dated February 27, 1967, and further regulation enacted by the ANM. All subsoil situated within Brazilian territory is deemed state property, with the mining activities subject to specific permits granted by the ANM.
Mineral resources are not mineral reserves and do not meet the threshold for mineral reserve modifying factors, such as estimated economic viability, that would allow for conversion to mineral reserves. There is no certainty that any part of the mineral resources estimated will be converted into mineral reserves.
Mineral resources are not mineral reserves and do not meet the threshold for mineral reserve modifying factors, such as estimated economic viability, that would allow for conversion to mineral reserves. There is no certainty that any part of the mineral resources estimated will be converted into mineral reserves.
(h) Cut-off grade of P 2 O 5 ap ≥ 5.2% and 0.8 ≤ RCP ≤ 1.6 and MgO (i) Cut-off grade of P 2 O 5 ap ≥ 5.0% and 0.9 ≤ RCP ≤ 3.0 was applied to mineral resources.
(h) Cut-off grade of P 2 O 5 ap ≥ 5.0% and 0.8 ≤ RCP ≤ 1.6 and MgO (i) Cut-off grade of P 2 O 5 ap ≥ 5.0% and 0.9 ≤ RCP ≤ 3.0 was applied to mineral resources.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
The potash industry in Saskatchewan is very mature which makes it easier to attract vendors to support the needs of the various mine sites throughout the province. Saskatoon and Regina, Saskatchewan both have large industrial sectors with a variety of machine shops and industrial support services. Some specialty services are provided from the Alberta oil and gas industry.
The potash industry in Saskatchewan is very mature which makes it easier to attract vendors to support the needs of the various mine sites throughout the province. Saskatoon and Regina both have large industrial sectors with a variety of machine shops and industrial support services. Some specialty services are provided from the Alberta oil and gas industry.
The K3 North shaft steel and Keope hoist rope up were completed. The K3 North shaft first ore skipped in December 18 and trucked to the K2 mill. The first K3 ore was conveyed on the overland conveyor to the K2 mill in December. 2019 Commissioned the K3 Koepe production and Blair service hoists.
The K3 North shaft steel and Keope hoist rope up were completed. The K3 North shaft first ore skipped in December 18 and trucked to the K2 mill. The first K2 ore was conveyed on the overland conveyor to the K2 mill in December. 2019 Commissioned the K3 Koepe production and Blair service hoists.
The area surrounding the village and State Highway MG-146 is included in the currently controlled mining permits, and is therefore not seen as a significant encumbrance to Tapira. The capacity requirements are not currently in place for all tailings disposal for total LOM capacity requirements.
The area surrounding the village and State Highway MG-146 is currently included in the currently controlled mining permits; and is therefore, not seen as a significant encumbrance to Tapira. The capacity requirements are not currently in place for all tailings disposal for total LOM capacity requirements.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
Where CaO / P 2 O 5 ratio was greater than or equal to 1.34, P 2 O 5 ap was equal to the total of P 2 O 5 ; where the CaO / P 2 O 5 ratio was less than 1.35, P 2 O 5 ap was equal to the CaO / 1.35 ratio.
(d) Actual production varies from annual operational capacity shown in the above table due to factors that include, among others, the level of demand for our products, the quality of the reserves, the nature of the geologic formations we are mining at any particular time, maintenance and turnaround time, accidents, mechanical failure, weather conditions, and other operating conditions, as well as the effect of recent initiatives intended to improve operational excellence.
(d) Actual production varies from annual operational capacity shown in the above table due to factors that include, among others, the level of demand for our products, the quality of the reserves, the nature of the geologic formations we are mining at any particular time, maintenance and turnaround time, mechanical failure, weather conditions, and other operating conditions, as well as the effect of recent initiatives intended to improve operational excellence.
The Belle Plaine Member is mined using solution mining techniques at the Belle Plaine Facility. • White Bear Formation : The White Bear Formation consists of marker beds that are a distinctive unit of thin interbedded clay, halite, and sylvinite horizons that are not minable due to their insufficient thicknesses of only 4.0 to 5.0 feet (1.2 to 1.5 m). • Esterhazy Member : The Esterhazy Member is separated from the Belle Plaine Member by the White Bear Formation marker beds, a sequence of clay seams, low-grade sylvinite, and halite.
The Belle Plaine Member is mined using solution mining techniques at the Belle Plaine Facility. • White Bear Formation : The White Bear Formation consists of marker beds that are a distinctive unit of thin interbedded clay, halite, and sylvinite horizons that are not minable due to insufficient thicknesses of only 4.0 to 5.0 feet (1.2 to 1.5 m). • Esterhazy Member : The Esterhazy Member is separated from the Belle Plaine Member by the White Bear Formation marker beds, a sequence of clay seams, low-grade sylvinite, and halite.
The Belle Plaine Member is mined using solution mining techniques at the Belle Plaine Facility and is not mined at the Esterhazy Facility. • White Bear Member : The White Bear Member consists of marker beds that are a distinctive unit of thin interbedded clay, halite, and sylvinite horizons that are not minable due to their insufficient thickness of only 4.0 to 5.0 feet (1.2 to 1.5 m). • Esterhazy Member : The Esterhazy Member is separated from the Belle Plaine Member by the White Bear Member marker beds, a sequence of clay seams, low-grade sylvinite, and halite.
The Belle Plaine Member is mined using solution mining techniques at the Belle Plaine Facility and is not mined at the Esterhazy Facility. • White Bear Member : The White Bear Member consists of marker beds that are a distinctive unit of thin interbedded clay, halite, and sylvinite horizons that are not minable due to insufficient thickness of only 4.0 to 5.0 feet (1.2 to 1.5 m). • Esterhazy Member : The Esterhazy Member is separated from the Belle Plaine Member by the White Bear Member marker beds, a sequence of clay seams, low-grade sylvinite, and halite.
(b) Actual production varies from annual operational capacity shown in the above table due to factors that include, among others, the level of demand for our products, the quality of the reserves, the nature of the geologic formations we are mining at any particular time, maintenance and turnaround time, accidents, mechanical failure, weather conditions, and other operating conditions.
(b) Actual production varies from annual operational capacity shown in the above table due to factors that include, among others, the level of demand for our products, the quality of the reserves, the nature of the geologic formations we are mining at any particular time, maintenance and turnaround time, mechanical failure, weather conditions, and other operating conditions.
Item 2. Properties. SUMMARY OVERVIEW OF MINING As used in this Form 10-K, the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” “inferred mineral resource,” “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are defined and used in accordance with S-K 1300. All mineral resources and mineral reserves have been prepared by qualified persons.
Item 2. Properties. SUMMARY OVERVIEW OF MINING As used in this Form 10-K, the terms “mineral resource,” “measured mineral resource,” “indicated mineral resource,” “inferred mineral resource,” “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are defined and used in accordance with S-K 1300. All determinates of mineral resources and mineral reserves have been prepared by qualified persons.
The typical sylvinite intervals within the Prairie Evaporite Formation consist of a mass of interlocked sylvite crystals that range from pink to translucent and may be rimmed by greenish-grey clay or bright red iron insoluble material, with minor halite randomly disseminated throughout the mineralized zones.
The sylvinite intervals within the Prairie Evaporite Formation consist of a mass of interlocked sylvite crystals that range from pink to translucent and may be rimmed by greenish-grey clay or bright red iron insoluble material, with minor halite randomly disseminated throughout the mineralized zones.
The Tapira igneous rocks intrude the phyllites, schists, and quartzites of the Late-Proterozoic Brasília mobile belt. The Tapira igneous complex is roughly elliptical, 35 square kilometers (km 2 ) in area and consists predominantly of alkaline pyroxenite rocks with subordinate carbonatite, serpentinite (dunite), glimmerite, syenite, and ultramafic potassic dikes.
The Tapira igneous rocks intrude the phyllites, schists, and quartzites of the Late-Proterozoic Brasília mobile belt. The Tapira igneous complex is roughly elliptical, 35 square kilometers ( “ km 2 ” ) in area and consists predominantly of alkaline pyroxenite rocks with subordinate carbonatite, serpentinite (dunite), glimmerite, syenite, and ultramafic potassic dikes.
Reports prepared by qualified persons and third parties are reviewed at various levels of the Global Review Team before they are ultimately reviewed and approved by our senior leadership team. In future years, Mosaic expects to modify and streamline our S-K 1300 processes and internal controls. 84
Reports prepared by qualified persons and third parties are reviewed at various levels of the Global Review Team before they are ultimately reviewed and approved by our senior leadership team. In future years, Mosaic expects to modify and streamline our S-K 1300 processes and internal controls.
The Lower Mining Zone is approximately 20 feet (6.1 m) thick. Potash mineralization contains sylvinite: a mixture of the iron oxide-stained halite, sylvite and locally carnallite. When present interstitially or as massive pods, carnallite can deteriorate rapidly or be preferentially dissolved. The color of the potash can vary from light orange to deep red rimmed crystals.
The Lower Mining Zone is approximately 20 feet (6.1 m) thick. Potash mineralization contains sylvinite: a mixture of the iron oxide-stained halite, sylvite and local carnallite. When present interstitially or as massive pods, carnallite can deteriorate rapidly or be preferentially dissolved. The color of the potash can vary from light orange to deep red rimmed crystals.
This station takes the high-pressure feed from the main lines and cuts it down through onsite filtration and also does some pre-heating to provide low pressure gas directly to the facility. There are a variety of local or site roads on or to the Belle Plaine Facility. These are typically gravel roads. Roads around the processing plant are paved.
This station takes the high-pressure feed from the main lines and cuts it down through on-site filtration and also does some pre-heating to provide low pressure gas directly to the facility. There are a variety of local or site roads on or to the Belle Plaine property. These are typically gravel roads. Roads around the processing plant are paved.
The K1 and K2 mines were closed 9 months ahead of schedule in response to brine inflow conditions. 2022 K1 and K2 shaft decommissioning completed. Geology and Mineralization The intracratonic Elk Point Basin is a major sedimentary geological feature in western Canada and the northwest U.S. It contains one of the world’s largest stratabound potash resources.
The K1 and K2 mines were closed 8 months ahead of schedule in response to brine inflow conditions. 2022 K1 and K2 shaft decommissioning completed. Geology and Mineralization The intracratonic Elk Point Basin is a major sedimentary geological feature in western Canada and the northwest U.S. It contains one of the world’s largest stratabound potash resources.
The net book value for Esterhazy is $3.4 billion as of December 31, 2022. 69 Table of Conten t Figure 2.5: Location Plan 70 Table of Conten t Table 2.22: Mineral Lease Crown Lease Number Type Area (Hectares) Expiration Date KL 105 Subsurface Mineral Lease 26,125 November 2, 2023 KL 126 Subsurface Mineral Lease 28,473 October 25, 2026 KLSA 003 Subsurface Mineral Lease 25,498 November 18, 2030 Table 2.23: Sections and Acreages Owned by the Crown Township/Range Sections of Mineral Rights Owned by Crown* Area of Mineral Rights Owned by Crown (acres) 19/30 19-2/16 12,221 20/30 18-1/16 11,542 21/30 18-6/16 11,753 22/30 2-1/16 1,331 19/31 18-1/16 11,561 20/31 19-3/16 12,265 21/31 13-7/16 8,613 22/31 15-15/16 10,238 18/32 5-7/16 3,471 19/32 18-15/16 12,116 20/32 14-11/16 9,388 21/32 17-2/16 10,970 22/32 4-6/16 2,799 18/33 5-12/16 3,662 19/33 10-11/16 6,850 20/33 11-7/16 7,326 21/33 8-5/16 5,313 22/33 1-6/16 878 18/1 15-9/16 9,969 19/1 15-14/16 10,158 20/1 16-7/16 10,533 21/1 14-6/16 9,207 22/1 4-3/16 2,668 19A/1 2-12/16 1,762 18/2 6-1/16 3,865 19/2 4-13/16 3,083 19A/2 1-12/16 1,130 Total 309-4/16 194,672 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available. 71 Table of Conten t Table 2.24: Sections and Acreages of Mosaic-Owned Mineral Rights Township/Range Sections of Mineral Rights Owned/ Leased by Mosaic* Area of Mineral Rights Owned/Leased by Mosaic (acres) 19/30 17-14/16 11,420 20/30 19-7/16 12,430 21/30 18-8/16 11,822 19/31 16-13/16 10,760 20/31 17-13/16 11,389 21/31 23-6/16 14,954 22/31 4-7/16 2,846 18/32 4-15/16 3,168 19/32 18-8/16 11,843 20/32 22-12/16 14,553 21/32 19-12/16 12,624 22/32 4-8/16 2,868 18/33 5-14/16 3,764 19/33 10-6/16 6,631 20/33 9-8/16 6,087 21/33 12-10/16 8,075 22/33 2-3/16 1,390 18/1 2-8/16 1,583 19/1 18-14/16 12,084 19A/1 4-15/16 3,177 20/1 20-8/16 13,134 21/1 21-7/16 13,707 22/1 9-15/16 6,343 18/2 2-9/16 1,631 19/2 10-4/16 6,579 19A/2 2-2/16 1,365 Total 30-2/16 206,227 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available. 72 Table of Conten t Table 2.25: Partial Mineral Rights Area Township/Range Crown Mineral Rights Leased by Mosaic, Currently Not Mineable (acres)* Mineral Rights Owned/Leased by Mosaic, Currently Not Mineable (acres)* 21/30 321 — 20/31 80 — 21/31 80 — 22/31 80 514 21/32 321 — 21/33 — 74 18/1 150 — 19/1 1209 138 19A/1 322 — 20/1 221 — 21/1 80 159 18/2 160 — 19/2 161 — 19A/2 61 — Total 3246 885 *Less than 100% share of a mineral rights parcel.
The net book value for Esterhazy is $3.5 billion as of December 31, 2023. 70 Table of Co ntent Figure 2.5: Location Plan 71 Table of Co ntent Table 2.22: Mineral Lease Crown Lease Number Type Area (Hectares) Expiration Date KL 105 Subsurface Mineral Lease 26,125 November 2, 2044 KL 126 Subsurface Mineral Lease 28,473 October 25, 2026 KLSA 003 Subsurface Mineral Lease 25,498 November 18, 2030 Table 2.23: Sections and Acreages Owned by the Crown Township/Range Sections of Mineral Rights Owned by Crown* Area of Mineral Rights Owned by Crown (acres) 19/30 19-2/16 12,221 20/30 18-1/16 11,542 21/30 18-6/16 11,753 22/30 2-1/16 1,331 19/31 18-1/16 11,561 20/31 19-3/16 12,265 21/31 13-7/16 8,613 22/31 15-15/16 10,238 18/32 5-7/16 3,471 19/32 18-15/16 12,116 20/32 14-11/16 9,388 21/32 17-2/16 10,970 22/32 4-6/16 2,799 18/33 5-12/16 3,662 19/33 10-11/16 6,850 20/33 11-7/16 7,326 21/33 8-5/16 5,313 22/33 1-6/16 878 18/1 15-9/16 9,969 19/1 15-14/16 10,158 20/1 16-7/16 10,533 21/1 14-6/16 9,207 22/1 4-3/16 2,668 19A/1 2-12/16 1,762 18/2 6-1/16 3,865 19/2 4-13/16 3,083 19A/2 1-12/16 1,130 Total 309-4/16 194,672 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available. 72 Table of Co ntent Table 2.24: Sections and Acreages of Mosaic-Owned Mineral Rights Township/Range Sections of Mineral Rights Owned/ Leased by Mosaic* Area of Mineral Rights Owned/Leased by Mosaic (acres) 19/30 17-14/16 11,420 20/30 19-7/16 12,430 21/30 18-8/16 11,822 19/31 16-13/16 10,760 20/31 17-13/16 11,389 21/31 23-6/16 14,954 22/31 4-7/16 2,846 18/32 4-15/16 3,168 19/32 18-8/16 11,843 20/32 22-12/16 14,553 21/32 19-12/16 12,624 22/32 4-8/16 2,868 18/33 5-14/16 3,764 19/33 10-6/16 6,631 20/33 9-8/16 6,087 21/33 12-10/16 8,075 22/33 2-3/16 1,390 18/1 2-8/16 1,583 19/1 18-14/16 12,084 19A/1 4-15/16 3,177 20/1 20-8/16 13,134 21/1 21-7/16 13,707 22/1 9-15/16 6,343 18/2 2-9/16 1,631 19/2 10-4/16 6,579 19A/2 2-2/16 1,365 Total 30-2/16 206,227 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available. 73 Table of Co ntent Table 2.25: Partial Mineral Rights Area Township/Range Crown Mineral Rights Leased by Mosaic, Currently Not Mineable (acres)* Mineral Rights Owned/Leased by Mosaic, Currently Not Mineable (acres)* 21/30 321 — 20/31 80 — 21/31 80 — 22/31 80 514 21/32 321 — 21/33 — 74 18/1 150 — 19/1 1209 138 19A/1 322 — 20/1 221 — 21/1 80 159 18/2 160 — 19/2 161 — 19A/2 61 — Total 3246 885 *Less than 100% share of a mineral rights parcel.
As of December 31, 2022, all environmental licenses were either valid or being renewed pursuant to applications filed with the Brazilian Environmental Agency within the legal deadlines. Licenses are managed through national and state databases. There are action plans in progress to comply with the environmental conditions that are not met yet within the environmental permits.
As of December 31, 2023, all environmental licenses were either valid or being renewed pursuant to applications filed with the Brazilian Environmental Agency within the legal deadlines. Licenses are managed through national and state databases. There are action plans in progress to comply with the environmental conditions that are not met yet within the environmental permits.
The plant produces phosphate conventional and ultrafine concentrate, which is sent by pipeline (conventional) and truck (ultrafine) to local Mosaic chemical plants for finished product production. 79 Figure 2.6: Project Location Plan Infrastructure Tapira is located in a highly developed region known as Alto Parnaíba.
The plant produces phosphate conventional and ultrafine concentrate, which is sent by pipeline (conventional) and truck (ultrafine) to local Mosaic chemical plants for finished product production. 80 Figure 2.6: Project Location Plan Infrastructure Tapira is located in a highly developed region known as Alto Parnaíba.
Hickory Creek) from Farmland-Hydro. 2004 Cargill Crop Nutrition acquired and reopened the Wingate Facility. 2004 Mosaic created out of a merger between IMC and Cargill Crop Nutrition. 2005 Wingate is shutdown. 2006 The Fort Green site is closed permanently, and the property is consolidated into Four Corners and Wingate. 2008 Wingate is reopened. 2014 Mosaic acquired CF Industries’ phosphate business in Florida, which included the South Pasture property. 2018 South Pasture Facility is idled. 2018 Ona (western portion) property is consolidated into Four Corners. 2020 South Fort Meade acquired the Eastern Reserves Phase I. 2022 South Fort Meade acquired the Eastern Reserves Phase II. 55 Table of Conten t Geology and Mineralization The phosphate deposits of Florida are sedimentary in origin and part of a phosphate-bearing province that extends from southern Florida north along the Atlantic coast into southern Virginia.
Hickory Creek) from Farmland-Hydro. 2004 Cargill Crop Nutrition acquired and reopened the Wingate Facility. 2004 Mosaic created out of a merger between IMC and Cargill Crop Nutrition. 2005 Wingate is shutdown. 2006 The Fort Green site is closed permanently, and the property is consolidated into Four Corners and Wingate. 2008 Wingate is reopened. 2014 Mosaic acquired CF Industries’ phosphate business in Florida, which included the South Pasture property. 2018 South Pasture Facility is idled. 2018 Ona (western portion) property is consolidated into Four Corners. 2020 South Fort Meade acquired the Eastern Reserves Phase I. 2022 South Fort Meade acquired the Eastern Reserves Phase II. 55 Table of Co ntent Geology and Mineralization The phosphate deposits of Florida are sedimentary in origin and part of a phosphate-bearing province that extends from southern Florida north along the Atlantic coast into southern Virginia.
This survey program consisted of 136 miles (219 km) of source lines and 129 miles (208 km) of receiver lines. 2014 Plant upgrades included the adding and commissioning of Compaction #6. 2016/2017 The site’s ability to produce at a sustained 3.0 million tonnes per year in future years was validated through a “proving run” completed in 2016 when the Belle Plaine Facility achieved a proven peak capacity of 3.9 million tonnes per year. 65 Table of Conten t 2019 Plant upgrades were completed, consisting of adding the east thickener and advanced dewatering techniques. 2020 Two production wells were cored in 2020 to support the grade interpretation and calibration of the gamma geophysical logging system.
This survey program consisted of 136 miles (219 km) of source lines and 129 miles (208 km) of receiver lines. 2014 Plant upgrades included the adding and commissioning of Compaction #6. 2016/2017 The site’s ability to produce at a sustained 3.0 million tonnes per year in future years was validated through a “proving run” completed in 2016 when the Belle Plaine Facility achieved a proven peak capacity of 3.9 million tonnes per year. 2019 Plant upgrades were completed, consisting of adding the east thickener and advanced dewatering techniques. 2020 Two production wells were cored in 2020 to support the grade interpretation and calibration of the gamma geophysical logging system.
Assets added the injection wells 3 and 4, reclaim brine system, #4 boiler, process water building, cold leach motor control center room, #5 compaction system, #8 warehouse building, #2 reclaim, reclaim losses system, pond return slurry tank and centrifuge upgrades, rotary dryer #3, #2 loadout system, 37 miles (60 km) of new mine field pipelines, a drilling rig, new substation and replacement of the #4 crystallizer. 2010 The Pense 3D seismic survey was completed that covered approximately 15 sq. miles (40 sq. km) and was adjacent to and merged with the previous 3D surveys.
Assets added the injection wells 3 and 4, reclaim brine system, #4 boiler, process water building, cold leach motor control center room, #5 compaction system, #8 warehouse building, #2 reclaim, reclaim losses system, pond return slurry tank and centrifuge upgrades, rotary dryer #3, #2 loadout system, 37 miles (60 km) of new mine field pipelines, a drilling rig, new substation and replacement of the #4 crystallizer. 65 Table of Co ntent 2010 The Pense 3D seismic survey was completed that covered approximately 15 sq. miles (40 sq. km) and was adjacent to and merged with the previous 3D surveys.
Four drum miners cutting K3 shaft pillar development started. Two four rotor miner assemblies completed. The K3 South shaft sinking was completed in November. 2020 Completion of the South shaft bottom steel, added a third four-rotor miner, installed the Mainline conveyor, added a fourth rotor miner cutting and completed the K3 South Headframe concrete slip.
Four drum miners cutting K3 shaft pillar development started. Two four rotor miner assembly completed. The K3 South shaft sinking was completed in November. 2020 Completion of the South shaft bottom steel, added a third four-rotor miner, installed the Mainline conveyor, added a fourth rotor miner cutting and completed the K3 South Headframe concrete slip.
(c) The percent of P 2 O 5 represents a measure of the phosphate content in phosphate rock or a phosphate ore body. A higher percentage corresponds to a higher percentage of phosphate content in phosphate rock or a phosphate ore body. (d) We have a 75% economic interest in the Miski Mayo Mine and consolidate their results.
(c) The percent of P 2 O 5 represents a measure of the phosphate content in phosphate rock or a phosphate ore body. A higher percentage corresponds to a higher percentage of phosphate content in phosphate rock or a phosphate ore body. (d) We have a 75% economic interest in the Miski Mayo Mine and consolidate its results.
(c) Mineral reserve tonnages and grade are reported as a beneficiation plant product (phosphate rock) tonnage and P 2 O 5 grade. A LOM commodity price of US$68.0/tonne of phosphate rock was used to assess prospects for economic extraction but is not used for cut-off purposes. Cut-off based on productivity factors per site have been applied to estimate mineral reserves.
(c) Mineral reserve tonnages and grade are reported as a beneficiation plant product (phosphate rock) tonnage and P 2 O 5 grade. A LOM commodity price of US$118/tonne of phosphate rock was used to assess prospects for economic extraction but is not used for cut-off purposes. Cut-off based on productivity factors per site have been applied to estimate mineral reserves.
Section 7 Average total thickness of the potash mineralization 8.55 feet (2.6 m)., based on the ratio of 8.5 feet (2.6 m)t. production panel mining height and 9.0 feet (2.7 m) t. development mining height. Section 11 Density 129.878 lbs./cu ft.
Section 7 Average total thickness of the potash mineralization 8.55 feet (2.6 m)., based on the ratio of 8.5 feet (2.6 m). production panel mining height and 9.0 feet (2.7 m) development mining heights. Section 11 Density 129.878 lbs./cu ft.
Table 2.1 Summary of Production - Phosphate Properties (in millions of tonnes) December 31, Mine Property Annual Operational Capacity (tonnes) (a)(b) 2022 2021 2020 Production (tonnes) %P 2 O 5 (c) Production (tonnes) %P 2 O 5 (c) Production (tonnes) %P 2 O 5 (c) Phosphate (Grade: P 2 O 5 ) (c) Florida 14.0 9.6 27.6 11.1 28.0 12.8 28.4 Total United States 14.0 9.6 27.6 11.1 28.0 12.8 28.4 Miski Mayo (d) 4.0 4.2 29.7 4.2 29.8 3.3 29.6 Total Peru 4.0 4.2 29.7 4.2 29.8 3.3 29.6 Araxá / Patrocinio 1.3 0.9 34.5 0.8 34.9 0.9 35.0 Cajati 0.6 0.3 34.3 0.3 34.1 0.4 33.8 Catalão 1.0 1.1 34.8 1.1 34.9 1.1 34.5 Tapira 2.1 1.9 35.1 1.8 35.1 1.9 35.3 Total Brazil 5.0 4.2 34.8 4.0 34.9 4.3 34.7 Total Phosphate 23.0 18.0 29.8 19.3 29.8 20.4 29.9 ______________________________ (a) Annual operational capacity is the expected average long-term annual capacity for finished goods considering constraints represented by the grade, quality and quantity of the reserves being mined as well as equipment performance and other operational factors.
Table 2.1 Summary of Production - Phosphate Properties (in millions of tonnes) December 31, Mine Property Annual Operational Capacity (tonnes) (a)(b) 2023 2022 2021 Production (tonnes) %P 2 O 5 (c) Production (tonnes) %P 2 O 5 (c) Production (tonnes) %P 2 O 5 (c) Phosphate (Grade: P 2 O 5 ) (c) Florida 14.0 9.1 27.8 9.6 27.6 11.1 28.0 Total United States 14.0 9.1 27.8 9.6 27.6 11.1 28.0 Miski Mayo (d) 4.8 4.7 29.7 4.2 29.7 4.2 29.8 Total Peru 4.8 4.7 29.7 4.2 29.7 4.2 29.8 Araxá / Patrocinio 1.1 0.9 34.7 0.9 34.5 0.8 34.9 Cajati 0.5 0.3 33.7 0.3 34.3 0.3 34.1 Catalão 1.0 1.0 34.8 1.1 34.8 1.1 34.9 Tapira 2.0 1.7 35.2 1.9 35.1 1.8 35.1 Total Brazil 4.6 3.9 34.9 4.2 34.8 4.0 34.9 Total Phosphate 23.4 17.7 29.9 18.0 29.8 19.3 29.8 ______________________________ (a) Annual operational capacity is the expected average long-term annual capacity for finished goods considering constraints represented by the grade, quality and quantity of the reserves being mined as well as equipment performance and other operational factors.
The net book value for Belle Plaine is $0.9 billion as of December 31, 2022. 60 Table of Conten t Figure 2.4: Location Plan Table 2.14: Mineral Lease Crown Lease Number Type Area (Ha) E Expiration Date KL 106-R Subsurface Mineral Lease 21,501 July 1, 2033 61 Table of Conten t Table 2.15: Sections and Acreages Owned by the Crown Township/Range Sections of Mineral Rights Owned by Crown* Area of Mineral Rights Owned by Crown (acres) 18/21 2/100 12 19/21 4-13/16 3,087 17/22 4-14/16 3,118 18/22 9-10/16 6,166 19/22 9-6/16 5,991 17/23 9-11/16 6,201 18/23 14-13/16 9,475 17/24 7-1/16 4,500 18/24 18-7/16 11,813 18/25 4-5/16 2,768 Total 83-2/100 53,131 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available.
The net book value for Belle Plaine is $0.9 billion as of December 31, 2023. 60 Table of Co ntent Figure 2.4: Location Plan Table 2.14: Mineral Lease Crown Lease Number Type Area (Ha) E Expiration Date KL 106-R Subsurface Mineral Lease 21,501 July 1, 2033 61 Table of Co ntent Table 2.15: Sections and Acreages Owned by the Crown Township/Range Sections of Mineral Rights Owned by Crown* Area of Mineral Rights Owned by Crown (acres) 18/21 2/100 12 19/21 4-13/16 3,087 17/22 4-14/16 3,118 18/22 9-10/16 6,166 19/22 9-6/16 5,991 17/23 9-11/16 6,201 18/23 14-13/16 9,475 17/24 7-1/16 4,500 18/24 18-7/16 11,813 18/25 4-5/16 2,768 Total 83-2/100 53,131 *Full sections range from 640 acres to 644 acres; total acreage shown above is based on 640 acres per section where actual survey acreage is not available.
Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2022, all environmental licenses were valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2023, all environmental licenses were valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
Table 2.2 Summary of Production - Potash Properties (in millions of tonnes) December 31, Facility Annualized Proven Peaking Capacity (tonnes) (a)(b) Annual Operational Capacity (tonnes) (b)(c)(d) 2022 2021 2020 Ore Mined (tonnes) Grade % K 2 O (e) Ore Mined (tonnes) Grade % K 2 O (e) Ore Mined (tonnes) Grade % K 2 O (e) Belle Plaine – MOP (f) 3.9 3.0 11.3 19.3 11.0 19.3 12.6 18.0 Esterhazy – MOP 6.3 6.0 13.7 24.5 13.3 23.9 15.0 24.1 Colonsay – MOP (g) 2.6 1.5 2.6 26.4 1.0 26.6 0.0 0.0 Total Canada 12.8 10.5 27.6 22.5 25.3 22.0 27.6 21.3 Carlsbad – K-Mag ®(h) 0.9 0.7 3.0 6.2 3.1 6.3 3.4 5.7 Total United States 0.9 0.7 3.0 6.2 3.1 6.3 3.4 5.7 Taquari – MOP 0.7 0.5 1.5 14.3 1.8 15.1 1.8 16.6 Total Brazil 0.7 0.5 1.5 14.3 1.8 15.1 1.8 16.6 Total Potash 14.4 11.7 32.1 20.6 30.2 20.0 32.8 19.4 ______________________________ (a) Represents full capacity based on 350 operating days per annum.
Table 2.2 Summary of Production - Potash Properties (in millions of tonnes) December 31, Facility Annualized Proven Peaking Capacity (tonnes) (a)(b) Annual Operational Capacity (tonnes) (b)(c)(d) 2023 2022 2021 Ore Mined (tonnes) Grade % K 2 O (e) Ore Mined (tonnes) Grade % K 2 O (e) Ore Mined (tonnes) Grade % K 2 O (e) Belle Plaine – MOP (f) 3.9 3.0 10.2 19.3 11.3 19.3 11.0 19.3 Esterhazy – MOP (i) 6.3 6.3 14.1 23.4 13.7 24.5 13.3 23.9 Colonsay – MOP (g) 2.6 1.5 1.8 25.6 2.6 26.4 1.0 26.6 Total Canada 12.8 10.8 26.1 21.9 27.6 22.5 25.3 22.0 Carlsbad – K-Mag ®(h) 0.9 0.7 2.3 6.7 3.0 6.2 3.1 6.3 Total United States 0.9 0.7 2.3 6.7 3.0 6.2 3.1 6.3 Taquari – MOP 0.7 0.5 1.8 14.7 1.5 14.3 1.8 15.1 Total Brazil 0.7 0.5 1.8 14.7 1.5 14.3 1.8 15.1 Total Potash 14.4 12.0 30.2 20.3 32.1 20.6 30.2 20.0 ______________________________ (a) Represents full capacity based on 350 operating days per annum.
Section 7 Average total thickness of the phosphate mineralization 13 to 50 feet (4 to 15 m) Section 6 Minimum Concentrate %P 2 O 5 0.2745 Section 11 Minimum Pebble %P 2 O 5 18.3 to 22.9% Section 11 Maximum pebble magnesium oxide (“ MgO ”) cut-off volume 0.025 Section 11 Maximum Clay Content 40 to 50% Section 11 Maximum Dragline Mining depth 85 feet (26 m) Section 11 Maximum dredge mining depth 109 feet (33 m) Section 11 Production Days per Year 365 days Section 11 Mining Method Dredge and dragline mining Section 13 Production Rate Approximately 9 to 13 million tonnes per year (2022-2030).
Section 7 Average total thickness of the phosphate mineralization 13 to 50 feet (4 to 15 m) Section 6 Minimum Concentrate %P 2 O 5 0.2745 Section 11 Minimum Pebble %P 2 O 5 18.3 to 22.9% Section 11 Maximum pebble magnesium oxide (“ MgO ”) cut-off volume 0.025 Section 11 Maximum Clay Content 40 to 50% Section 11 Maximum Dragline Mining depth 85 feet (26 m) Section 11 Maximum dredge mining depth 109 feet (33 m) Section 11 Production Days per Year 365 days Section 11 Mining Method Dredge and dragline mining Section 13 Production Rate Approximately 9 to 13 million tonnes per year (2023-2033).
Located 1.5 miles (2.4 km) northeast of the K2 site, the dam forms a reservoir approximately 5.25 miles (8.9 km) long and 650 feet (198.1 m) wide. K3 mine water is supplied from K2 via a 7.4 mile (11.9 km) long pipeline. The power to operate the Esterhazy Facility is supplied by the provincial utility, SaskPower.
Located 1.5 miles (2.4 km) northeast of the K2 site, the dam forms a reservoir approximately 5.25 miles (8.5 km) long and 650 feet (200 m) wide. K3 mine water is supplied from K2 via a 7.4 mile (11.8 km) long pipeline. The power to operate the Esterhazy Facility is supplied by the provincial utility, SaskPower.
Table 2.12: Mineral Resources at the End of the Fiscal Year Ended December 31, 2022 Based on a LOM Plan Phosphate Rock Price of $68.00 per tonne (a)(b)(c)(d)(f) (tonnes in millions) Category Tonnes (e) Grade %P 2 O 5 (e) Cut-off Grade Metallurgical Recovery % Measured 102.0 30.0 n/a 100 % Indicated 415.0 30.1 n/a 100 % Measured + Indicated 517.0 30.1 n/a 100 % Inferred 83.0 30.0 n/a 100 % ______________________________ (a) Mineral resources are not mineral reserves and do not meet the threshold for mineral reserve modifying factors, such as estimated economic viability, that would allow for conversion to mineral reserves.
Table 2.12: Mineral Resources at the End of the Fiscal Year Ended December 31, 2023 Based on a LOM Plan Phosphate Rock Price of $103 per tonne (a)(b)(c)(d)(f) (tonnes in millions) Category Tonnes (e) Grade %P 2 O 5 (e) Cut-off Grade Metallurgical Recovery % Measured 102.0 30.0 n/a 100 % Indicated 415.0 30.1 n/a 100 % Measured + Indicated 517.0 30.1 n/a 100 % Inferred 83.0 30.0 n/a 100 % ______________________________ (a) Mineral resources are not mineral reserves and do not meet the threshold for mineral reserve modifying factors, such as estimated economic viability, that would allow for conversion to mineral reserves.
The phosphate ore is extracted through surface mining by drilling and blasting, loaded into trucks and transported to the beneficiation plant onsite at Cajati. 44 Table of Conten t Processing plants and other facilities Beneficiation plant Complexo Mineração de Catalão (“ CMC ”) Location Near Catalão, Minas Gerais (and Goias), Brazil Type and amount of ownership interests 100% owned by Mosaic Fertilizantes P&K S.A., a wholly-owned indirect subsidiary of Mosaic.
The phosphate ore is extracted through surface mining by drilling and blasting, loaded into trucks and transported to the beneficiation plant onsite at Cajati. 44 Table of Co ntent Processing plants and other facilities Beneficiation plant Complexo Mineração de Catalão (“ CMC ”) Location Near Catalão, Minas Gerais (and Goias), Brazil Type and amount of ownership interests 100% owned by Mosaic Fertilizantes P&K S.A., a wholly-owned indirect subsidiary of Mosaic.
Mineral Resource and Mineral Reserve Assumption and Modifying Factors The key mineral resource and mineral reserve assumptions and modifying factors are listed in Table 2.19. Table 2.19: Key Assumptions and Modifying Factors Parameter Value TRS Section Supporting Information Regional geologic studies, 700 production wells, seismic surveys and greater than 55 years of mining history from approximately 350 caverns.
Mineral Resource and Mineral Reserve Assumption and Modifying Factors The key mineral resource and mineral reserve assumptions and modifying factors are listed in Table 2.19. 67 Table of Co ntent Table 2.19: Key Assumptions and Modifying Factors Parameter Value TRS Section Supporting Information Regional geologic studies, 700 production wells, seismic surveys and greater than 55 years of mining history from approximately 350 caverns.
K3 shaft pillar development completed in December. The K3 fifth four-rotor continuous miner started cutting in October. The first ore from K3 conveyed to K1. 2021 The sixth K3 four-rotor miner started cutting in January and the seventh four rotor-miner started cutting in May.
K3 shaft pillar development was completed in December. The K3 fifth four-rotor miner started cutting in October. The first ore from K3 conveyed to K1. 2021 The sixth K3 four-rotor miner started cutting in January and the seventh four rotor-miner started cutting in May.
All infrastructure, including the processing plant, TMA, cluster sites, and pipeline rights of way, are located on Mosaic-owned land. 42 Table of Conten t Key permit conditions Primary environmental resource areas identified include groundwater quality and shorebird habitat. Environmental monitoring for effluents, air and surface/groundwater is in place. Currently, 11 permits or approvals are active for the property.
All infrastructure, including the processing plant, TMA, cluster sites, and pipeline rights of way, are located on Mosaic-owned land. 42 Table of Co ntent Key permit conditions Primary environmental resource areas identified include groundwater quality and shorebird habitat. Environmental monitoring for effluents, air and surface/groundwater is in place. Currently, 11 permits or approvals are active for the property.
Selective drop out of NaCl is achieved through two parallel lines of evaporators that heat the brine with steam, that is generated onsite through natural gas fired boilers. The heating of the raw feed brine results in water liberation, causing NaCl to concentrate in the brine and then precipitate out of solution.
Selective drop out of NaCl is achieved through two parallel lines of evaporators that heat the brine with steam that is generated on-site through natural gas fired boilers. The heating of the raw feed brine results in water liberation, causing NaCl to concentrate in the brine and then precipitate out of solution.
All subsoil situated within Brazilian territory is deemed state property, with the mining activities subject to specific permits granted by the ANM. 45 Table of Conten t Key permit conditions Mosaic currently holds one mining permit within the Taquari area (92,498 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis.
All subsoil situated within Brazilian territory is deemed state property, with the mining activities subject to specific permits granted by the ANM. 45 Table of Co ntent Key permit conditions Mosaic currently holds one mining permit within the Taquari area (92,498 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis.
All parcels are bisected by County Road 663, State Road 62, State Road 64 and several local roads. The mining and beneficiation activities at this location have been idled. Located at 27.585787 N, 81.942888 W. 51 Table of Conten t Figure 2.3: Location Plan The table below includes only land holdings associated with our mining properties.
All parcels are bisected by County Road 663, State Road 62, State Road 64 and several local roads. The mining and beneficiation activities at this location have been idled. Located at 27.585787 N, 81.942888 W. 51 Table of Co ntent Figure 2.3: Location Plan The table below includes only land holdings associated with our mining properties.
The mine is 261 miles (420 km) to the Minas Gerais state capital of Belo Horizonte, via the BR-262 highway to Araxá and then the BR 146 highway to Tapira.
The mine is 261 miles (420 km) by road to the Minas Gerais state capital of Belo Horizonte, via the BR-262 highway to Araxá and then the BR 146 highway to Tapira.
The supply of electricity occurs via a 138 kiloVolt (“ kV ”) transmission line that is operated by CEMIG and Vale Energia Concessionaires. Tapira has a total receipt of 40 megawatts (“ MW ”) and an annual power usage around 305 gigawatts (“ GW ”).
The supply of electricity occurs via a 13.8 kiloVolt (“ kV ”) transmission line that is operated by CEMIG and Vale Energia Concessionaires. Tapira has a total receipt of 40 megawatts (“ MW ”) and an annual power usage around 305 gigawatts (“ GW ”).
Colonsay Potash Facility (“ Colonsay Facility ”) Location Saskatchewan, Canada Type and amount of ownership interests 100% owned by Mosaic Potash Colonsay ULC, a wholly-owned, indirect subsidiary of Mosaic. 41 Table of Conten t Titles, mineral rights, leases or options and acreage We lease approximately 118,378 acres of mineral rights for the Colonsay Facility from the Province of Saskatchewan (the “ Crown ”) under Subsurface Mineral Lease KL 108.
Colonsay Potash Facility (“ Colonsay Facility ”) Location Saskatchewan, Canada Type and amount of ownership interests 100% owned by Mosaic Potash Colonsay ULC, a wholly-owned, indirect subsidiary of Mosaic. 41 Table of Co ntent Titles, mineral rights, leases or options and acreage We lease approximately 118,378 acres of mineral rights for the Colonsay Facility from the Province of Saskatchewan (the “ Crown ”) under Subsurface Mineral Lease KL 108.
Key permit conditions Mosaic currently holds a total of 18 permits within the CMC area (2,131 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2022, all environmental licenses were either valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
Key permit conditions Mosaic currently holds a total of eight permits within the CMC area (2,131 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2023, all environmental licenses were either valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
Recoverable Finished Product tonnes vs. Matrix Volume Mined ranges from 9.4-9.9%. Recoverable Finished Product tonnes vs. Total Volume Mined is 2.2%. (d) Mineral reserves are presented on the basis of our 75% interest. The reference point for cut-off grade and pit optimization analysis is tonnes of concentrate at a price of US$57.9/tonne concentrate (2022 LOM price evaluation).
Recoverable Finished Product tonnes vs. Matrix Volume Mined ranges from 9.4 to 9.9%. Recoverable Finished Product tonnes vs. Total Volume Mined is 2.2%. (d) Mineral reserves are presented on the basis of our 75% interest. The reference point for cut-off grade and pit optimization analysis is tonnes of concentrate at a price of US$97.69/tonne concentrate (2022 LOM price evaluation).
Table 2.9 lists the land status and acreages for the facilities and properties. 50 Table of Conten t Table 2.8: Property Locations Property Location South Fort Meade Facility Straddles the county line road beginning 1.3 miles (2.1 km) east of the City of Bowling Green and continuing another five miles (8 km). Located at 27.667195 N, 81.761349 W.
Table 2.9 lists the land status and acreages for the facilities and properties. 50 Table of Co ntent Table 2.8: Property Locations Property Location South Fort Meade Facility Straddles the county line road beginning 1.3 miles (2.1 km) east of the City of Bowling Green and continuing another five miles (8 km). Located at 27.667195 N, 81.761349 W.
(d) Only after a positive economic test and inclusion in the LOM plan are the mineral reserve estimates considered and disclosed as mineral reserves. (e) A commodity price of $68.00 per tonne of phosphate rock was used to assess the economic viability of the mineral reserves in the LOM.
(d) Only after a positive economic test and inclusion in the LOM plan are the mineral reserve estimates considered and disclosed as mineral reserves. (e) A commodity price of $118 per tonne of phosphate rock was used to assess the economic viability of the mineral reserves in the LOM.
Process and potable water for the K1 mill is provided by three approximately 200 foot (61 m) deep wells drilled into the upper Dundurn aquifer. The K2 mill water supply comes from the Cutarm Creek dam reservoir that is owned and operated by Mosaic.
Process and potable water for the K1 mill is provided by three 200 ft (61 m) deep wells drilled into the upper Dundurn aquifer. The K2 mill water supply comes from the Cutarm Creek dam reservoir that is owned and operated by Mosaic.
Cut-off grade of P 2 O 5 ap ≥ 5.0% and 0.9 ≤ RCP ≤ 3.0 was applied to mineral reserves. Mineral reserves were proven to be economic based on internal transfer price of R$336/tonne of phosphate rock (2021 LOM price evaluation) that was derived in the discounted cash flow and compared to the gross margin available.
Cut-off grade of P 2 O 5 ap ≥ 5.0% and 0.9 ≤ RCP ≤ 3.0 was applied to mineral reserves. Mineral reserves were proven to be economic based on internal transfer price of R$543/tonne of phosphate rock (2023 LOM price evaluation) that was derived in the discounted cash flow and compared to the gross margin available.
The main substation receives 138 kV in three oil-type transformers which is transferred to secondary substations. From the secondary substations, power is distributed to the end-use areas at 110 volts (“ V ”), 220 V, 280 V, 440 V, or 4,160 V.
The main substation receives 13.8 kV in three oil-type transformers which is transferred to secondary substations. From the secondary substations, power is distributed to the end-use areas at 110 volts (“ V ”), 220 V, 280 V, 440 V, or 4,160 V.
(j) A 4% K 2 O cut-off grade with less than 2% kieserite is used to estimate mineral resources. This is consistent with the definition of mineable potash established by the U.S. Geological Survey. A US $195.6/tonne price was used to assess economic viability for the mineral resources, but was not used for cut-off purposes.
(j) A 4% K 2 O cut-off grade with less than 2% kieserite is used to estimate mineral reserves. This is consistent with the definition of mineable potash established by the U.S. Geological Survey. A US $293/tonne price was used to assess economic viability for the mineral resources but was not used for cut-off purposes.
(b) All acres include surface rights with the exception of the DeSoto mineral rights. 52 Table of Conten t Governmental permits and approvals for mining are obtained from federal, state and county authorities, including the Environmental Resource Permit (“ ERP ”) issued by FDEP and permits required by Section 404 of the federal Clean Water Act.
(b) All acres include surface rights with the exception of the DeSoto mineral rights. 52 Table of Co ntent Governmental permits and approvals for mining are obtained from federal, state and county authorities, including the Environmental Resource Permit (“ ERP ”) issued by FDEP and permits required by Section 404 of the federal Clean Water Act.
For the purpose of reporting for our total financial statistics, the discounted cash flow was converted from Brazilian reals to U.S. dollars at an exchange rate of R$4.69 = US$1.00. 83 Because Tapira is a captive operation supplying rock to other Mosaic-owned chemical plants, there is no transparent mined phosphate rock commodities price market in Brazil.
For the purpose of reporting for our total financial statistics, the discounted cash flow was converted from Reals to U.S. dollars at an exchange rate of R$4.86 = US$1.00. 84 Because Tapira is a captive operation supplying rock to other Mosaic-owned chemical plants, there is no transparent mined phosphate rock commodities price market in Brazil.
Mineral and surface rights are joined at the Four Corners, Wingate, Pioneer and South Pasture properties. Portions of the DeSoto property and South Fort Meade facility have the surface and mineral interests severed. The net book value for our Florida phosphate mining facilities and exploration properties is $1.3 billion as of December 31, 2022.
Mineral and surface rights are joined at the Four Corners, Wingate, Pioneer and South Pasture properties. Portions of the DeSoto property and South Fort Meade facility have the surface and mineral interests severed. The net book value for our Florida phosphate mining facilities and exploration properties is $1.9 billion as of December 31, 2023.
Mineral reserves meet all the mining criteria required at Esterhazy including, but not limited to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. The methodology for estimating mineral reserves consists of post pillar mine design work and scheduling and the application of mining recovery and unplanned dilution.
Mineral reserves meet all the mining criteria required at Esterhazy including, but not limited to mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors. 79 Table of Co ntent The methodology for estimating mineral reserves consists of post pillar mine design work and scheduling and the application of mining recovery and unplanned dilution.
In 1992, Fosfértil was privatized, and a pool of investors held the company shares. In 2010, Vale S.A. acquired complete control of Fósfertil. Thereafter it created a new company, Vale Fertilizantes S.A., which also included other fertilizer assets. At the start of 2018, Mosaic Fertilizantes P&K S.A. acquired the assets of Vale Fertilizantes S.A,, including the Tapira mineral deposit.
In 1992, Fosfértil was privatized, and a pool of investors held the company shares. In 2010, Vale S.A. acquired complete control of Fósfertil and after created a new company, Vale Fertilizantes S.A., which included other fertilizer assets. At the start of 2018, Mosaic Fertilizantes P&K S.A. acquired the assets of Vale Fertilizantes including the Tapira mineral deposit.
The plan is updated to include the current mineral rights status, seismic survey interpretations, the limits of the current mining footprint, known areas (geological anomalies, town sites and other surface infrastructure) that make the mineral resource inaccessible and therefore excluded from the mineral resource estimation process, property boundary pillars, pillars around exploration holes and infrastructure, “no mining” areas in the uncontrolled mineral rights locations and a pillar between the K1 and K2 mining area and the adjacent K4 mineral resource areas.
The plan is updated to include the current mineral rights status, seismic survey interpretations, the limits of the current mining footprint, known areas (geological anomalies, town sites and other surface infrastructure) that make the mineral resource inaccessible, property boundary pillars, pillars around exploration holes and infrastructure, “no mining” areas in the uncontrolled mineral rights locations and a pillar between the K1 and K2 mining area and the adjacent K4 mineral resource areas.
(d) Mineral resources amenable to underground mining methods are accessed via shaft and scheduled for extraction based on a conceptual room and pillar design using the same technical parameters as for mineral reserves. (e) No cut-off grade or value based on commodity price is used to estimate mineral resources.
(e) Mineral resources amenable to underground mining method are accessed via shaft and scheduled for extraction based on a conceptual room and pillar design using the same technical parameters as for mineral reserves. (f) No cut-off grade or value based on commodity price is used to estimate mineral resources.
The Salt Stringer is approximately 10 feet (3.0 m) thick. 66 Table of Conten t • The Interzonal Salt is a thick bed of salt located between the Lower and Upper Mining Zones. • The Marker Bed is a small, very rich potash bed located midway through the Interzonal Salt. • The Lower Mining Zone consists of beds 13, 12 and 11 of the Esterhazy Member.
The Salt Stringer is approximately 10 feet (3.0 m) thick. • The Interzonal Salt is a thick bed of salt located between the Lower and Upper Mining Zones. • The Marker Bed is a small, very rich potash bed located midway through the Interzonal Salt. • The Lower Mining Zone consists of beds 13, 12 and 11 of the Esterhazy Member.
There were no changes in the mineral resource estimates from 2021 to 2022. Mineral Reserve Estimates The Belle Plaine Facility mineral reserve estimates are reported as in-situ mineralization accounting for all applicable modifying factors.
There were no changes in the mineral resource estimates from 2022 to 2023. Mineral Reserve Estimates The Belle Plaine Facility mineral reserves are reported as in-situ mineralization accounting for all applicable modifying factors.
The methodology for estimating mineral resources consists of interpreting the available geological data in plain view using AutoCAD 2020 software.
The methodology for estimating mineral resources consists of interpreting the available geological data in plan view using AutoCAD 2020 software.
Many large component vendors have branch offices in either Lakeland or Tampa, Florida. Engineering, design, and technical services are readily available in Bartow, Lakeland and Tampa, Florida. 53 Table of Conten t Mining Method Our mining operations in central Florida extract phosphate using surface mining techniques.
Many large component vendors have branch offices in either Lakeland or Tampa, Florida. Engineering, design, and technical services are readily available in Bartow, Lakeland and Tampa, Florida. 53 Table of Co ntent Mining Method Our mining operations in central Florida extract phosphate using surface mining techniques.
History and Exploration Table 2.10 lists the important historical dates and events relevant to the mining facilities and exploration properties: 54 Table of Conten t Table 2.10: History Date Event/Activity 1881 Pebble phosphate discovered along the Peace River south of Fort Meade by Captain J.
History and Exploration Table 2.10 lists the important historical dates and events relevant to the mining facilities and exploration properties: 54 Table of Co ntent Table 2.10: History Date Event/Activity 1881 Pebble phosphate discovered along the Peace River south of Fort Meade by Captain J.
Overview Overviews for Phosphates, Potash and Mosaic Fertilizantes are shown in Table 2.3, Table 2.4, and Table 2.5 below. All properties are operated by Mosaic. All properties listed below are production stage, except Araxá/Patrocinio.
Overview Overviews for Phosphates, Potash and Mosaic Fertilizantes are shown in Table 2.3, Table 2.4, and Table 2.5 below. All properties are operated by Mosaic. All properties listed below are production stage, except Araxá/Patrocínio.
Between the top of the Prairie Evaporite and the top of the Patience Lake Member is a 0 to 45 feet (0.0 to 13.7 m) thick unit of halite with clay bands called the Salt Back.
Between the top of the Prairie Evaporite and the top of the Patience Lake Member is a 0 to 45 feet (0.0 to 14.0 m) thick unit of halite with clay bands called the Salt Back.
The mineral resources were restricted based on an optimized pit limit that took into account cut-off grade, price, mining costs, infrastructure limitations, and mineral licenses. The mineral resources are exclusive of mineral reserves and include approximately 129.8 million tonnes of measured and indicated mineral resources with a P 2 O 5 ap grade of 7.2%.
The mineral resources were restricted based on an optimized pit limit that took into account cut-off grade, price, mining costs, infrastructure limitations, and mineral licenses. The mineral resources are exclusive of mineral reserves and include approximately 69.7 Mt of measured and indicated mineral resources with a P 2 O 5 ap grade of 8.7%.
Section 16 57 Table of Conten t Mineral Resource Estimates Mosaic’s phosphate mineral resources are reported as a beneficiation plant product (phosphate rock) tonnage and P 2 O 5 grade, including a total primary impurities ratio (“ MER ”).
Section 16 57 Table of Co ntent Mineral Resource Estimates Mosaic’s phosphate mineral resources are reported as a beneficiation plant product (phosphate rock) tonnage and P 2 O 5 grade, including a total primary impurities ratio (“ MER ”).
Mineral Resources and Mineral Reserves Comparison As of December 31, 2022, our estimated mineral reserves were 660 million tonnes compared to 668 million as of the prior year-end, resulting in a change of ESTERHAZY The Esterhazy Facility is approximately 10 miles (16 km) to the east of the town of Esterhazy in Saskatchewan, Canada, 56 miles (90 km) southeast of the city of Yorkton and 137 miles (220 km) east of the city of Regina (Figure 2.5).
Mineral Resources and Mineral Reserves Comparison As of December 31, 2023, our estimated mineral reserves were 652 million tonnes compared to 663 million as of the prior year-end, resulting in a change of ESTERHAZY The Esterhazy Facility is approximately 10 miles (16 km) to the east of the town of Esterhazy in Saskatchewan, Canada, 56 miles (90 km) southeast of the city of Yorkton and 137 miles (220 km) east of the city of Regina (Figure 2.5).
Key permit conditions Mosaic currently holds a total of eight mining permits within the Cajati area (5,183 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2022, all environmental licenses were still valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
Key permit conditions Mosaic currently holds a total of nine mining permits within the Cajati area (5,078 hectares). Permit conditions are dictated by operating licenses, which are maintained and renewed on a regular basis. As of December 31, 2023, all environmental licenses were still valid or were being renewed pursuant to applications filed with the Brazilian Environmental Agency.
The material is conveyed to the processing circuit where it is divided into seven major units: crushing, concentration, dissolution, drying, compaction, storage and shipping. Processing plants and other facilities Beneficiation plant 46 Table of Conten t Mineral Resource and Mineral Reserve Estimates Table 2.6 shows the Mineral Resource tonnage and grade for all properties as of December 31, 2022.
The material is conveyed to the processing circuit where it is divided into seven major units: crushing, concentration, dissolution, drying, compaction, storage and shipping. Processing plants and other facilities Beneficiation plant 46 Table of Co ntent Mineral Resource and Mineral Reserve Estimates Table 2.6 shows the Mineral Resource tonnage and grade for all properties as of December 31, 2023.
We currently hold a total of eight mining permits within the Tapira area (3,842 hectares ( “ha” ). The Tapira mineral assets are part of a Consortium named Consórcio Vale Fosfértil Tapira created by Decree number 98.962 (February 16, 1990), process number 930.785/1988 (4,355.76 ha) granted to Vale S.A.
We currently hold a total of nine mining permits within the Tapira area (3,853 hectares ( “ ha ” )). The Tapira mineral assets are part of a Consortium named Consórcio Vale Fosfértil Tapira created by Decree number 98.962 (February 16, 1990), process number 930.785/1988 (4,355.76 ha) granted to Vale S.A.
Additional areas of exploration and research include better understanding of the non-weathered material and titanium ore for future mining prospects. 81 History of Previous Operations Tapira has been in operation since 1978 and has produced more than 70 million tonnes ( “Mt” ) of phosphate concentrate.
Additional areas of exploration and research include better understanding the non-weathered material and titanium ore for future mining prospects. History of Previous Operations 82 Tapira has been in operation since 1978 and has produced more than 70 million tonnes ( “ Mt ” ) of phosphate concentrate.
Section 11 Mining Recovery 27.6% Section 12, 13 External Dilution None Section 12, 13 Processing Method Two mill facilities that crush, float, screen and compact KCl. Section 14 Processing Recovery 85 to 88% (86.1% average) Section 14 Deleterious Elements and Impact Increased amounts of NaCl can significantly impact production volumes. Section 10 Environmental Requirements, Permits, etc.
Section 11 Mining Recovery 28.4% Section 12, 13 External Dilution 0% Section 12, 13 Processing Method Two mill facilities that crush, float, screen and compact KCl. Section 14 Processing Recovery 85 to 88% (86.1% average) Section 14 Deleterious Elements and Impact Increased amounts of NaCl can significantly impact production volumes. Section 10 Environmental Requirements, Permits, etc.
We idled the mining and beneficiation activities at South Pasture. The facilities and properties are in DeSoto, Hardee, Hillsborough, Manatee and Polk counties. Even though we continue to add real property to one or more of these locations, most of the property currently being mined or planned for future mining have been in industry ownership for over 50 years.
The facilities and properties are in DeSoto, Hardee, Hillsborough, Manatee and Polk counties. Even though we continue to add real property to one or more of these locations, most of the property currently being mined or planned for future mining have been in industry ownership for over 50 years.
K1 mine production officially started in September 1962 at a capacity of 0.9 million tonnes per year. 1965 K2 TMA Phase I expansion. 1966 The K1 mine capacity was expanded to 1.5 million tonnes per year. 1967 The K2 shaft sinking was completed to a capacity of 2.4 million tonnes per year.
The first official K1 mine production started September at a capacity of 0.9 million tonnes per year. 1965 K2 TMA Phase I expansion. 1966 The K1 mine capacity was expanded to 1.5 million tonnes per year. 1967 The K2 shaft sinking was completed to a capacity of 2.4 million tonnes per year.

… 177 more changes not shown on this page.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

9 edited+10 added−14 removed3 unchanged
Biggest changeIn 2020, we filed petitions with the DOC and the ITC that requested the initiation of countervailing duty investigations into imports of phosphate fertilizers from Morocco and Russia. The purpose of the petitions was to remedy the distortions that we believe foreign subsidies have caused or are causing in the U.S. market for phosphate fertilizers, and thereby restore fair competition.
Biggest changeThe purpose of the petitions was to remedy the injury to the U.S. phosphate fertilizer industry caused by imports that benefit from unfair foreign subsidies, and thereby restore fair competition. CVD orders normally stay in place for at least five years, with possible extensions. Moroccan and Russian producers have initiated actions at the U.S.
We are also subject to the following legal and environmental proceedings in addition to those described in Note 23 of our Consolidated Financial Statements included in this Form 10-K: Countervailing Duty Petitions .
We are also subject to the following legal and environmental proceedings in addition to those described in Note 23 of our Consolidated Financial Statements included in this Form 10-K: Countervailing Duty Orders . In April 2021, the U.S.
On September 14, 2022, EPA Region 6 issued a Notice of Potential Violation and Opportunity to Confer (“ NOPVOC ”) regarding compliance of our Faustina Plant with Section 112(r) of the Federal Clean Air Act and 40 C.F.R. Part 68, commonly known as the Risk Management Plan Rule (“ RMP Rule ”).
We intend to continue to vigorously defend this matter. Faustina Plant Risk Management Plan . On September 14, 2022, EPA Region 6 issued a Notice of Potential Violation and Opportunity to Confer (“ NOPVOC ”) regarding compliance of our Faustina Plant with Section 112(r) of the Federal Clean Air Act and 40 C.F.R.
Monitoring programs have been put in place to ensure continued compliance with the waiver and settlement agreement. Cruz Litigation . On August 27, 2020, a putative class action complaint was filed in the Circuit Court of the Thirteenth Judicial Circuit in Hillsborough County, Florida against our wholly-owned subsidiary, Mosaic Global Operations Inc., and two unrelated co-defendants.
On August 27, 2020, a putative class action complaint was filed in the Circuit Court of the Thirteenth Judicial Circuit in Hillsborough County, Florida against our wholly-owned subsidiary, Mosaic Global Operations Inc., and two unrelated co-defendants.
The NOPVOC relates to a compliance evaluation inspection conducted by EPA at the Faustina Plant from February 22-25, 2022 and alleges violations of the RMP Rule. We conferred with the EPA regarding the allegations in the NOPVOC on November 30, 2022. The EPA provided a penalty calculation on January 19, 2023 which we are reviewing.
Part 68, commonly known as the Risk Management Plan Rule (“ RMP Rule ”). The NOPVOC relates to a compliance evaluation inspection conducted by the EPA at the Faustina Plant from February 22-25, 2022 and alleges violations of the RMP Rule. We conferred with the EPA regarding the allegations in the NOPVOC on November 30, 2022.
On December 23, 2021, plaintiffs opposed that motion and Mosaic replied to that opposition on January 26, 2022. On April 6, 2022, the court heard argument on the motions to dismiss filed by Mosaic and each other co-defendant. We intend to continue to vigorously defend this matter. Faustina Plant Risk Management Plan .
On December 23, 2021, plaintiffs opposed that motion and Mosaic replied to that opposition on January 26, 2022. On April 6, 2022, the court heard argument on the motions to dismiss filed by Mosaic and each other co-defendant. In late March 2023, the court denied Mosaic's motions to dismiss, and discovery now is underway.
Mosaic has initiated actions at the U.S. Court of International Trade contesting certain aspects of the DOC’s final determinations that, we believe, failed to capture the full extent of Moroccan and Russian phosphate fertilizer subsidies. Moroccan and Russian producers have also initiated U.S. Court of International Trade actions, seeking lower cash deposit rates and revocation of the countervailing duty orders.
Court of International Trade ( “ CIT ” ) seeking to overturn the orders. Mosaic has also made claims contesting certain aspects of DOC’s final determinations that, we believe, failed to capture the full extent of Moroccan and Russian subsidies. These litigation challenges remain underway.
On January 8, 2020, the Hardee County Mining Coordinator issued a Notice of Violation (“ NOV ”) for the failure by Mosaic to proceed with reclamation of two designated reclamation units within the South Pasture Mine footprint. These two reclamation units comprise 166 acres of mined lands.
The South Pasture Mine – Hardee County Enforcement Action. On January 8, 2020, Hardee County issued a Notice of Violation (“ NOV ”) for Mosaic’s delay in meeting the required reclamation schedule for two designated reclamation units within the South Pasture Mine.
As a result of these determinations, the DOC issued countervailing duty orders on phosphate fertilizer imports from Russia and Morocco, which are scheduled to remain in place for at least five years.
Department of Commerce ( “ DOC ” ) issued countervailing duty ( “ CVD ”) orders on imports of phosphate fertilizers from Morocco and Russia, in response to petitions filed by Mosaic.
Removed
On February 16, 2021, the DOC made final affirmative determinations that countervailable subsidies were being provided by those governments. On March 11, 2021, the ITC made final affirmative determinations that the U.S. phosphate fertilizer industry is materially injured by reason of subsidized phosphate fertilizer imports from Morocco and Russia.
Added
Most recently, in July and September 2023, the CIT issued three remand rulings – one addressing DOC’s determination in the CVD investigation of phosphate fertilizers from Russia, one addressing DOC’s determination in the CVD investigation of phosphate fertilizers from Morocco, and one addressing the U.S.
Removed
Currently, the cash deposit rates for such imports are approximately 20 percent for Moroccan producer OCP, 9 percent and 47 percent for Russian producers PhosAgro and Eurochem, respectively, and 17 percent for all other Russian producers. The final determinations in the DOC and ITC investigations are subject to challenge before U.S. federal courts and the World Trade Organization.
Added
International Trade Commission’s determination in 86 antidumping and countervailing duty investigations of phosphate fertilizers from Russia and Morocco – instructing the agencies to reconsider certain aspects of the rulings that were the basis for issuing the CVD orders.
Removed
Further, the cash deposit rates and the amount of countervailing duties owed by importers on such imports could change based on the results of the litigation as well as DOC’s annual administrative review proceedings. The South Pasture Extension Mine Litigation.
Added
When a CVD order is in place, DOC normally conducts annual administrative reviews, which establish a final CVD assessment rate for past imports during a defined period, and a CVD cash deposit rate for future imports.
Removed
The NOV cites noncompliance with the County Land Development Regulations and with the conditions of Development of Regional Impact (“ DRI ”) Development Order 12-21 that was issued in 2012 to authorize continued mining at the South Pasture Mine, continued operation of the South Pasture beneficiation plant, and mining at the South Pasture Mine Extension.
Added
In November 2023, DOC announced the final results of the first administrative reviews for the CVD orders on phosphate fertilizers for Russia and Morocco, covering the period November 30, 2020 to December 31, 2021. DOC calculated new subsidy rates of 2.12% for Moroccan producer OCP and 28.50% for Russian producer PhosAgro. These determinations are subject to appeal to the CIT.
Removed
Through the NOV, the county requested that Mosaic submit a revised reclamation plan and schedule to demonstrate when initial reclamation activities would be completed for the two reclamation units identified in the NOV.
Added
DOC is also conducting administrative reviews covering the period January 1, 2022 to December 31, 2022. The applicable final CVD assessment rates and cash deposit rates for imports of phosphate fertilizer from Morocco and Russia could change as a result of these various proceedings and potential associated appeals, whether in federal courts or at the World Trade Organization.
Removed
The delay in meeting the required reclamation schedule at the two reclamation units is tied to the idling and eventual shutdown of the Plant City fertilizer plant and the idling of the South Pasture Mine beneficiation plant. The Plant City Facility was first idled in late 2017.
Added
The delay resulted from idling the South Pasture beneficiation plant in 2018; because the plant was idled, no sand was available for reclamation activities.
Removed
In June 2019, Mosaic announced that the Plant City Facility would be closed permanently. Given the relationship between the Plant City fertilizer plant and the South Pasture beneficiation plant, and facing adverse market conditions, Mosaic idled the South Pasture beneficiation plant in September 2018. Idling that plant resulted in no tailings sand being produced by the processing of phosphate matrix.
Added
Acting on Mosaic’s “Application for Waiver and Reclamation Schedule Extension,” in May 2020, the Hardee County Board of County Commissioners approved: (1) a waiver of the applicable reclamation deadlines of the South Pasture Development Order and Land Development Code; (2) an alternative reclamation schedule; and (3) a settlement agreement that resolved the NOV.
Removed
As a result, there was no tailings sand available for use in backfilling reclamation at the South Pasture Mine, and specifically, the two reclamation units identified in the county’s January 8, 2020 NOV.
Added
Mosaic timely paid the civil penalty required by the settlement agreement and continues to implement the approved alternative reclamation schedule, as required. Monitoring programs are in place to ensure continued compliance with the Waiver and settlement agreement. Cruz Litigation .
Removed
On March 10, 2020, Mosaic filed an “Application for Waiver and Reclamation Schedule Extension” to secure Board of County Commissioners (“ BOCC ”) approval of extended reclamation deadlines for the South Pasture Mine. To obtain waiver relief from the BOCC, a quasi-judicial hearing would be required.
Added
We negotiated a Consent Agreement and Final Order (“ CAFO ”) with the agency that was filed on January 30, 2024.
Removed
Extensive negotiations between Mosaic and county legal and technical staff resulted in an agreement that involved two separate but related actions: (1) secure a waiver and reclamation schedule extension through formal action by the BOCC at a quasi-judicial public hearing; and (2) enter into a settlement agreement that would require payment of a civil penalty by Mosaic for the non-compliance in meeting the required reclamation deadlines of the South Pasture Mine Development Order and the County Mining Ordinance.
Added
The CAFO requires a penalty payment of $217,085 and the completion of two supplemental environmental projects: (1) installation of ammonia monitors and monitoring at the plant for a period of two years and (2) donation of two generators to the St. James Parish Department of Emergency Preparedness.
Removed
The settlement agreement would also be presented and acted upon at a formal public hearing before the BOCC. On May 7, 2020, a quasi-public judicial hearing was held before the Hardee County BOCC.
Removed
At that hearing, the BOCC voted unanimously to issue a waiver of the applicable reclamation deadlines of the South Pasture Development Order and the 85 county ordinance for three specific reclamation areas of the South Pasture Mine. The waiver also included a negotiated alternative reclamation schedule that extends the deadline for completion of reclamation until the end of 2023.
Removed
At that same hearing, the BOCC approved a settlement agreement that resolved all outstanding non-compliance associated with reclamation obligations at the South Pasture Mine and required Mosaic to pay an agreed settlement amount of $249,000. Mosaic has satisfied the payment obligation of the settlement agreement and continues to implement the alternative reclamation schedule, as required.
Removed
We intend to continue discussions with the agency.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures. Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report. 86 PART II.
Biggest changeItem 4. Mine Safety Disclosures. Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K is included in Exhibit 95 to this report. 87 PART II.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−1 removed5 unchanged
Biggest changeThe following table sets forth information with respect to shares of our Common Stock that we purchased during the quarter ended December 31, 2022 under the $2.0 billion share repurchase program authorized by our Board of Directors in the third quarter of 2022: 87 Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of a publicly announced program Maximum approximate dollar value of shares that may yet be purchased under the program (a) Common Stock October 1, 2022- October 31, 2022 — $ — — $ 1,979,868,011 November 1, 2022- November 30, 2022 — — — 1,979,868,011 December 1, 2022- December 31, 2022 1,409,611 45.45 1,409,611 1,915,799,008 Total 1,409,611 $ 45.45 1,409,611 $ 1,915,799,008 (a) At the end of the month shown.
Biggest changeThe following table sets forth information with respects to shares of our Common Stock that we purchased under the repurchase programs during the quarter ended December 31, 2023: Period Total number of shares purchased Average price paid per share Total number of shares purchased as part of a publicly announced program Maximum approximate dollar value of shares that may yet be purchased under the program (a) Common Stock October 1, 2023- October 31, 2023 1,416,915 $ 35.29 1,416,915 $ 1,267,818,328 November 1, 2023- November 30, 2023 1,444,352 34.62 1,444,352 1,217,818,369 December 1, 2023- December 31, 2023 1,378,073 36.28 1,378,073 1,167,818,473 Total 4,239,340 $ 35.38 4,239,340 $ 1,167,818,473 (a) At the end of the month shown. 88 Item 6.
The principal stock exchange on which our common stock is traded is The New York Stock Exchange under the symbol “MOS”.
“Financial Statements and Supplementary Data”. The principal stock exchange on which our common stock is traded is The New York Stock Exchange under the symbol “MOS”.
We have included information about the market price of, dividends on and the number of holders of our common stock under “Quarterly Results (Unaudited)” in the financial information that is incorporated by reference in this Form 10-K in Part II, Item 8, “Financial Statements and Supplementary Data”.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. We have included information about the market price of, dividends on and the number of holders of our common stock under “Quarterly Results (Unaudited)” in the financial information that is incorporated by reference in this Form 10-K in Part II, Item 8.
The following provides information related to equity compensation plans: Plan category Number of shares to be issued upon exercise of outstanding options, warrants and rights (a) Weighted-average exercise price of outstanding options, warrants and rights (b) Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in first column) Equity compensation plans approved by stockholders 6,369,391 $ 36.12 10,490,759 Equity compensation plans not approved by stockholders — — — Total 6,369,391 $ 36.12 10,490,759 ______________________________ (a) Includes grants of 651,456 stock options, 2,152,495 time-based restricted stock units and 3,565,440 total stockholder return (“TSR”) performance units settled in stock.
The following provides information related to equity compensation plans: Plan category Number of shares to be issued upon exercise of outstanding options, warrants and rights (a) Weighted-average exercise price of outstanding options, warrants and rights (b) Number of shares remaining available for future issuance under equity compensation plans (excluding shares reflected in first column) Equity compensation plans approved by stockholders 3,766,769 $ 34.46 17,924,996 Equity compensation plans not approved by stockholders — — — Total 3,766,769 $ 34.46 17,924,996 ______________________________ (a) Includes grants of 596,216 stock options, 1,485,573 time-based restricted stock units and 1,684,980 total stockholder return (“ TSR ”) performance units settled in stock.
Removed
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Other MOS 10-K year-over-year comparisons