About Mosaic
Mosaic Completes Investment in Joint Venture in Bayovar Region
Mosaic announced today the completion of its investment in a joint venture with subsidiaries of Vale S.A. and Mitsui & Co., Ltd. that owns a phosphate rock mine in the Bayóvar region in Peru.Terms of the investment include a 35 percent economic interest in the Bayóvar phosphate rock mine along with a commercial offtake supply agreement for up to 35 percent of the mine’s phosphate rock production. Mosaic paid Vale $385 million for the stake in the joint venture.
The Bayóvar rock will be used in Mosaic’s global phosphate operations. Phosphate rock production at Bayóvar and deliveries to Mosaic are expected to begin in the second half of calendar 2010.
“We are pleased to close this transaction that advances our strategic objective to secure our phosphate rock supply,” said Jim Prokopanko, Mosaic’s President and Chief Executive Officer.
Bayóvar Fact Sheet
- Bayóvar is located in the Sechura desert in Piura, Peru – on the northern coast of Peru
- The Bayóvar mine is an open-pit mine with a proven and probable reserve base of 247 million ore tonnes (or approximately 100 million concentrate tonnes)
- The mine has an estimated life of 27 years
- In comparison, Mosaic has 35 years of reserves (565 million tonnes of concentrates) with annual rock capacity of 16 million tonnes
- Bayóvar’s expected production capacity will be 3.9 million tonnes annually, once full project capacity is reached, with a P205 grade comparable to Mosaic’s Florida mines
- Bayóvar construction began two years ago; estimated start date for rock mine is in the second half of calendar 2010