Mosaic to sell Brazil potash mining operations in $27M deal

[Mining of potash ore in an underground mine using a mining machine]
Ramil Nasibulin/iStock via Getty Images

Mosaic (NYSE:MOS [https://seekingalpha.com/symbol/MOS]) said Wednesday it agreed to sell [https://seekingalpha.com/pr/20199039-mosaic-announces-agreement-for-sale-of-potash-mining-operations-in-brazil-to-vl-mineracao] its Taquari-Vassouras potash mine in Brazil to VL Mineração for as much as $27M in cash, plus responsibility for ~$22M in asset retirement obligations.

The deal, which is subject to approval by the Brazilian Administrative Council for Economic Defense, includes $12M upon closing, $10M one year after closing and $5M over six years.

Mosaic (NYSE:MOS [https://seekingalpha.com/symbol/MOS]) said operations at the Taquari mine require capital investments exceeding $25M to ensure continued viability, and believes the capital required to continue to own and operate Taquari has more attractive uses elsewhere within the company.

VL Mineração has expressed a strong interest in making the necessary investments to extend the Taquari operations, the company said.

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