The Mosaic Co of Plymouth, MN has decided to permanently discontinue muriate of potash (MOP) production at its facility in Carlsbad, NM by the end of 2014. The company attributes the decision to the quality of the ore and the age of the facilitys infrastructure. Mosaic will continue to produce MOP at three facilities in Saskatchewan: Esterhazy, Belle Plaine, and Colonsay. Mosaic plans to transition the Carlsbad facility to the exclusive production of K-Mag, a specialty fertilizer containing sulfur, potassium, and magnesium. The product currently represents 70% of production at Carlsbad and is regarded as a long-term strategic asset by the company. Mosaic estimates that the discontinued production will result in total pre-tax charges in the third and fourth quarters of US$135 million to US$160 million.
Volume 28 issue 14