Our Commitment to Sustainability:
CEO Message
Mosaic's third Sustainability Report takes stock of our progress, opportunities and goals, and I am confident that our mission to help the world grow the food it needs is attainable with an ever-improving focus on sustainability.
Krishi Jyoti: Mosaic Villages Project India
Krishi Jyoti means "enlightened agriculture" and brings modern agricultural inputs and practices to farmers with the objective of improving the productivity of their fields.
For Generations to Come:
Mosaic's Commitment to the Land
Mosaic reclaims every acre we mine and leads the industry in returning mined land to productive uses, for wildlife and people. And we want our reclamations to be valued by future generations.
4Rs Nutrient Stewardship: The Nexus of Food and Water
With the right nutrient management, crop yields can increase without an environmental compromise. The 4R's are about doing everything "right" in regard to fertilizer application and effectively reducing agriculture's potential for negative externalities.
Safety: The Bottom Line is People
Mosaic's focus on environmental health and safety is first and foremost in any decision we make. Our culture of safety is something that we pride ourselves on. It's a culture of helping each other ensure that intervene where necessary to protect people and sustain our performance.

Materials

EN1

Materials Used by Weight or Volume

Our business uses the following raw materials:

Materials Mined or Consumed
Reported in tonnes
FY2010 FY2011 FY2012
Potash Ore 20,400,000 30,000,000 30,800,000
Phosphate Rock 13,300,000 11,500,000 12,100,000
Limestone 225,000 250,000 286,000
Sulfur 3,400,000 3,500,000 3,600,000
Micronutrients 5,800 9,400 11,300
Ammonia 1,380,000 1,700,000 1,383,000
Notes: Material totals for 2010 have been revised upon inclusion of additional data points.
The potash ore total includes amount for PotashCorp's tolling.
Sulfur figures include the total used to produce sulfuric acid and in MicroEssentials.
Mirconutrients totals include zinc, boron and cupric oxide.
Ammonia figures include both purchased and produced ammonia.

Limestone is used to produce our animal feed products and for water treatment processing. Sulfur, a by-product of crude oil and natural gas de-sulfurization, is used to produce steam, electricity and sulfuric acid, which is utilized to produce phosphoric acid. We use by-product heat from sulfuric acid production to generate steam that we use in our operations and to generate electricity. Sulfur is also used in the production of our MicroEssentials product line. Various micronutrients, including boron, zinc, sulfur and cupric oxide, are key ingredients in our MicroEssentials product line. Ammonia is used in our finished products, DAP, MAP and MicroEssentials, and to neutralize the pH of the stack gases at our Esterhazy potash mine.

EN2

Percentage of Materials Used That are Recycled Input Materials

Sulfur is the most significant recycled raw material in our manufacturing processes. The sulfur used is recovered from crude oil and natural gas processing and then recycled in our plant operations to produce sulfuric acid, which we use to make phosphoric acid, steam and electricity. In 2011, sulfur made up approximately 8% by weight of our total raw materials. We recycle the catalyst used in our sulfuric acid production and recover the vanadium for recycling. We also use recycled oil as a flotation aid in our phosphate beneficiation process.

Energy

EN3

Direct Energy Consumption by Primary Energy Source

Mosaic's worldwide total direct energy consumption in 2011 was 84.5 million gigajoules (GJ). This represents a decrease of approximately 3% compared to 2010.

Direct Energy Consumption – by Energy Source

Approximately 99% of Mosaic's worldwide total direct energy consumption was from two sources: waste heat from sulfuric acid production and natural gas. The remaining 1% was made up of petroleum products and propane.

Our Phosphate operations require the production and consumption of sulfuric acid to liberate crop nutrients (phosphorous) from raw material inputs. The manufacture of sulfuric acid is an exothermic process, generating tremendous amounts of waste heat. Most of our finished phosphate crop nutrient manufacturing operations have installed bottoming cycle combined heat and power systems to convert this waste heat primarily into steam, used in the phosphate manufacturing facilities and mines.

In 2011, our Phosphate operations utilized a portion of this energy to produce 5.9 million GJ of electricity. We consider the waste heat from sulfuric acid production to be a direct primary energy source for our operations.

Natural gas is primarily used in our Phosphate and Potash operations to generate thermal energy for drying; however, a small portion of this fuel is utilized to produce steam for internal combined heat and power generation.

Energy Consumption by Source
(Million GJ)
2009 2010 2011
Sulfur 52.9 56.8 58.7
Natural Gas 21.6 27.8 24.6
Petroleum Products 1.6 1.7 1.2
Other Source 0.0 0.0 0.0
Total 76.1 86.3 84.5
Note: 2011 quantity of other source, primarily liquefied petroleum gas (LPG), accounted for approximately 0.0064 million GJ.
Waste heat from the processing of sulfur is used as a source of energy.

Direct Energy Consumption

Approximately 99% of Mosaic's worldwide total direct energy consumption is attributable to its Phosphate and Potash crop nutrient manufacturing operations. Of this, 77% is consumed in the production of Phosphate crop nutrients while 22% is consumed in production of Potash. The remaining 1% is consumed within Mosaic's product distribution network.

EN4

Indirect Energy Consumption by Primary Energy Source

Mosaic consumes indirect energy solely through the purchase of electricity produced by third parties. Mosaic's worldwide indirect energy consumption was 8.4 million GJ for 2011. Company-wide indirect energy consumption maintained 2010 levels while increasing production levels in all business units. This was achieved by efficiency improvements such as controlling cooling tower fans with automatic thermostats, automating plant equipment to operate only when in use, optimizing processes at concentrate and phosphate production facilities, transferring water by gravity flow to eliminate pumps, reducing run and idle times for mobile equipment, installing energy efficient lighting at plants and replacing older equipment with more efficient models. In addition, indirect energy consumption was reduced by the increased production of electricity through cogeneration.

Indirect Energy Consumption – by Fuel Source

Approximately 12% of Mosaic's worldwide indirect energy consumption is from renewable sources, including hydro-electric, bio-mass sources and wind power. Since 2009, almost 100% of our electricity used in our Brazilian operations came from hydro-electric sources.

As mentioned in EN3, Mosaic Phosphates produces a significant amount of electrical power through steam turbine generation as a byproduct of sulfuric acid production. Phosphate crop nutrient manufacture requires the production and consumption of sulfuric acid to liberate crop nutrients (phosphorous) from raw material inputs. The manufacture of sulfuric acid is an extremely exothermic process, generating tremendous amounts of waste heat. The amount of thermal energy generated in one of Mosaic's sulfuric acid plants is approximately 4.9 GJ per tonne of sulfuric acid produced. In 2011, Mosaic's Phosphate operations produced 5.9 million GJ of electricity through this process. Of this 5.9 million GJ, Mosaic consumed approximately 5.3 million GJ internally, offsetting purchase of electricity from third-party utilities.

Mosaic continuously looks for opportunities to improve the efficiency of, and expand the electricity output of, our cogeneration assets. In 2011, Florida concentrate plants sent approximately 1.2 million GJ of electricity to our mines. The installation of new transmission lines from our plants to our mines will allow Mosaic to increase internal consumption of electricity produced internally.

In 2011, Mosaic exported approximately 0.6 million GJ of electricity to the electrical grids for use by local utilities. This is notable as Mosaic's sulfuric acid manufacture cogeneration received formal recognition as "renewable energy" in Florida statutes in October 2005 (FL 366.91).

EN5

Energy Saved Due to Conservation and Efficiency Improvements

Energy efficiency for our all business units, measured in total GJ of purchased direct and indirect energy per finished product tonne, improved by approximately 14% between 2010 and 2011. Efficiency and optimization programs (ROICworks! and Momentum) implemented to identify energy savings opportunities for the company saw realized energy savings in 2011. Disruptions to internal production of ammonia also contributed to the reduction in energy consumption for 2011.

Mosaic emphasizes continuous energy improvement in our manufacturing facilities and support functions. This process is part of a broader strategic business plan designed to help Mosaic meet or exceed production and profitability requirements. This plan includes strategies for lowering purchased energy consumption through more efficient processes and maximizing use of energy generated through the crop nutrient manufacturing process.

To identify and capture potential energy opportunities, we have formed teams of energy representatives at our sites. These teams investigate a number of issues, such as improvements in natural gas use (e.g., efficiencies in boilers, dryers, mine air heating and cogeneration) and improvements in electrical systems (e.g., efficiencies in cogeneration systems and slurry pumping, including extensive utilization of variable speed drives, air compression, and heating and lighting systems).

In addition, Mosaic regularly conducts energy audits to help identify potential efficiency projects, assessing major manufacturing processes such as combustion, general electrical, electric motor systems, compressed air systems and heating. We also have utility engineers assigned to individual facilities to help identify and execute energy efficiency initiatives. Projects are monitored and audited, and the resulting metrics are used to establish key performance indicators. These efforts reduce Mosaic's overall energy profile, operational costs and use of indirect natural resources.

In 2011, Mosaic Phosphates identified, implemented and captured 0.38 million GJ of annual energy savings. Several examples of energy efficiency efforts by our Phosphate operations were:

Bartow, FL

  • Some examples of the facility's efforts to directly reduce energy consumption are automating cooling tower fans to turn off when not they're not needed, reducing the number of acid pumps required for production, optimizing control schemes for gypsum pumping and initiating a program to keep mobile equipment turned off during idle time. These improvements resulted in 0.02 million GJ less power required.
  • In addition to reducing energy consumption, projects were also completed to generate more power to directly offset power consumed at the mines. Generation capacity increased at Bartow by 0.03 million GJ.

New Wales, FL

  • Efficiency efforts here resulted in 0.015 million GJ less energy required. Some examples include installing variable frequency drives (VFDs) for slurry pumps, optimizing the runtimes of the ball and rod mills, continuous monitoring and repair of steam and compressed air leaks, and optimizing the area lighting in the plant.
  • New Wales is able to offset power consumption at our Four Corners mine so any opportunity to increase power generation is studied. Projects and initiatives that took place during 2011 include new superheaters and economizers, optimizing the gas strength in the sulfur burners and installing high efficiency packing and candles in the acid towers which resulted in a tower energy generation capacity increase of 0.031 million GJ.

Riverview, FL

  • VFDs were installed on the cooling tower fans, which reduced power consumption by 65 GJ.

Faustina, LA

  • Mosaic's Faustina ammonia plant was able to optimize water injection and implement speed control to reduce energy consumption by 0.006 million GJ and also reduce natural gas consumption by 0.04 million GJ due to efficiency improvements. By improving operating parameters and some converter changes, Faustina was able to gain about 10,000 GJ of generation capacity. Energy consumption was also reduced by improving screen efficiency which resulted in over 1,200 GJ saved.
  • Ball Mill efficiency improvements reduced electrical consumption in 2010. Gypsum pumping was also optimized and resulted in eliminating pumps altogether, saving diesel fuel. Combined, these initiatives saved over 0.18 million GJ.

Four Corners, FL

  • Approximately 0.04 million GJ of power was saved by optimizing operating times and throughput around the sizer.

Wingate, FL

  • Process improvements at the float plant and washer system increased efficiency and netted 0.009 million GJ of energy saved.

EN6

Initiative to Provide Energy Efficient or Renewable Energy Based Products or Services, and Reductions in Energy Requirements as a Result of These Initiatives

Renewable Energy Based Products or Services

A portion of Mosaic operations' electrical demand is satisfied through internal generation of electricity as a byproduct of the sulfuric acid manufacture process in our sulfuric acid plants and a heat recovery system in our Belle Plaine facility. This process allows several of our plants and mines to significantly reduce the amount of third-party electricity required from utilities. In 2011, Mosaic produced enough electricity—approximately 6.9 million GJ through cogeneration—to satisfy 47%of our company-wide electrical demand. At times when energy production exceeds internal demand, Mosaic sends surplus energy to the local utility grid. In 2011, Mosaic sent 0.6 million GJ of electricity to local utility grids. Mosaic expanded our network of transmission lines in Florida, allowing for the cogenerated electricity to be sent for use to our mines. Mosaic has also begun upgrades at our New Wales facility to increase capacity for electrical cogeneration while simultaneously installing transmission lines to supply our mines with surplus energy from the facility.

In October 2005, the Florida state legislature formally recognized that cogenerated electricity, produced as a byproduct of Mosaic's sulfuric acid manufacture, is "renewable energy" under Florida statute 366.91. In 2011, Mosaic sent approximately 600,000 GJ of surplus cogenerated electricity to the local utility grid.

Energy Efficient Based Products or Services

Mosaic has a vested interest in the success of our customers, the farmers of the world; it is their efforts that provide the food that feeds the world. To this end, Mosaic has developed several products and services that enhance farmers productivity and positively impact their energy efficiency.

Examples of Mosaic's premium products, services and practices that may impact energy efficiency include:

  • MicroEssentials®: MicroEssentials fertilizer products provide for uniform nutrient distribution, resulting in improved nutrient uptake with two forms of sulfur, which allows for plants to maximize their yield potential. For example, in Brazil, many blends utilize Single Super Phosphate (SSP); by utilizing MicroEssentials, less product is needed, requiring less fuel to ship, deliver and apply the same nutrient levels to the field. Mosaic expanded production of MicroEssentials fertilizer products in FY2012 to approximately 2.3 million tonnes per year and we continue to evaluate expansion opportunities of this valuable product line in the future.
  • K-Mag®: K-Mag delivers potassium (K), magnesium (Mg) and sulfur (S) in a single granule, reducing the need to physically blend fertilizers.
  • Nexfos®: In 2011, Mosaic unveiled Nexfos, a new feed-grade phosphate product that increases efficiency, enhances bioavailability and contains a higher sustainable concentration of phosphate over traditional livestock feed products. Nexfos represents the first innovation in feed-grade phosphate in 40 years. It also reduces purchasing, storing and handling costs for consumers and offers significant reductions during requirements production. Production design changes have resulted in increased water and energy efficiencies.
  • Back-hauling: We actively work with our third-party transportation providers to back-haul products, which decreases "dead head," or empty loads, minimizing unproductive fuel consumption.
  • In addition, Mosaic maintains active partnerships with industry leading research centers, targeting agriculture efficiency and productivity improvements. Examples include:
    • Mosaic has partnered with the CTIC to promote agricultural research covering comprehensive conservation and sustainable agricultural systems. CTIC's vision includes research into better soil, cleaner water, energy efficiency and wildlife resource improvements leading to productivity and profitability opportunities for the agriculture industry.
    • We also have established partnerships with key universities around the globe to test plots to develop fertilizers that can help crops use less water and still thrive and produce high yields. Maximizing yields while minimizing water use can potentially reduce requirements for energy intensive irrigation systems or increase energy efficiency per unit yield for farmers.

EN7

Initiatives to Reduce Indirect Energy Consumption and Reductions Achieved

Mosaic is concerned with the overall energy impact of our business, including effects outside our operational boundaries. Therefore, we pursue opportunities with the potential to reduce our indirect energy consumption. Examples are:

Video Conferencing Systems – Mosaic has invested capital into and is currently commissioning video conferencing systems for seven facilities within the Phosphates business unit. These systems will supplement the existing conferencing equipment located at Mosaic worldwide facilities, including locations in Canada and South America. We believe that the technology of enterprise video conferencing systems has matured to the point that it can effectively offset a portion of domestic and international employee travel. By eliminating a portion of car and air travel with these conferencing systems, Mosaic's indirect energy consumption from travel is expected to decline.

Alternative Work Schedules – Several of Mosaic's Potash business unit locations implemented temporary or full-time alternative work schedules that have the potential to reduce employee commute time and expense. Several locations have implemented schedules similar to 4 by 10 work weeks where a portion of the workforce works a combination of 4 work days for 10 hours instead of the more traditional five days for eight hours. By reducing the work week by one day, participating employees lower their commute-related fuel consumption by 20% and, therefore, contribute to a decrease in Mosaic's overall indirect energy consumption.

Water

EN8

Total Water Withdrawn by Source

Global Water Withdrawals By Source
(in 000 m3)
2009 2010 2011
Groundwater 64,600 57,298 54,374
Surface Water 213,258 224,097 207,916
Municipal, Industrial and Wastewater 1,254 1,737 1,864
Global Total Water Withdrawals 279,112 283,132 264,154
Notes: Total does not include water utilized for office/administrative facilities.
Municipal, Industrial and Wastewater totals revised after updating data management processes.

The primary sources of water for operations are surface water, groundwater and rainwater. Secondary sources of water include water supplied by local authorities and partially treated industrial and domestic wastewater, also supplied by local authorities. Surface water withdrawals include once-through cooling water utilized by facilities in Louisiana.

For 2011 reporting, Mosaic has included municipal, desalinated, and industrial (treated or partially treated wastewaters) water sources for the U.S., Canada and offshore operations.

Mosaic operations capture rainfall, a portion of which is impounded and utilized in the various production processes, with some discharged through permitted outfalls at Phosphate facilities. Traditionally, Mosaic has considered captured rainfall use as an "alternative water supply," and it is used in part to estimate recycle/reuse water usage rates at Florida concentrate and minerals operations.

EN9

Water Sources Significantly Affected by Withdrawal of Water

Mosaic's Florida operations depend upon low total dissolved solids (TDS) groundwater for operational needs. Mosaic's withdrawal and use of surface and groundwater for mining and fertilizer manufacturing is highly regulated,with stringent reporting and compliance requirements. The permitting, monitoring and reporting standards mandated by regulatory authorities are designed to protect water bodies and associated habitats from degradation and adverse environmental impacts.

Mosaic's Central Florida Phosphates operations are within the Southwest Florida Water Management District, a large portion of which is encompassed by the Southern Water Use Caution Area, which has been identified as a groundwater resource area of concern. Groundwater usage here requires more stringent standards for use and permitting of groundwater resources. The District has implemented a recovery strategy, which includes retiring some historical groundwater pumpage quantities within the District and the development of alternative water supplies. Mosaic continues to reduce its groundwater use; over the last 20 years Mosaic's Central Florida operations have decreased groundwater use by over 50%, representing the single largest reduction of water use by any entity in the District. Mosaic continues to work directly with the District to develop other viable, long-term alternative water supplies. In addition, Mosaic's Central Florida operations have also increased the efficiency with which we reuse process-related water streams.

Mosaic has voluntarily and significantly reduced its daily permitted groundwater use in Florida. A new proposed 20-year permit will result in a reduction of approximately 30% in permitted groundwater withdrawals. The permit is currently under review by the Southwest Florida Water Management District (SWFWMD). The permit would reduce annual average consumption over its 20-year life to 55 million gallons per day.

Mosaic is currently developing a long-term water strategy for our Florida operations to conserve water resources and reduce the amount of water we impound for operational use. To accomplish this, each Mosaic facility is involved in investigating opportunities to lower consumptive use of groundwater and utilize alternative sources.

EN10

Percentage and Total Volume of Water Recycled and Reused

Responsible use of water is a fundamental component of Mosaic's global sustainability vision. Our water management programs involve facility-specific and business unit-wide initiatives to reduce our water footprint. Facilities continuously monitor and evaluate water use to ensure it is minimized and water recycling and reuse are maximized.

Recycle and reuse percentage rates for Mosaic's Potash and Phosphate operations are presented below. Recycle rates are based on water utilized in operations from groundwater, surface water, municipal and wastewater withdrawals.

Water Recycle and Reuse Rates
(% of Recycle/Reuse)
2009 2010 2011
Mosaic Potash (Canada and United States)
Belle Plaine 86.0 89.0 89.8
Colonsay NR 94.0 93.8
Esterhazy K-1 72.7 83.0 82.8
Esterhazy K-2 67.6 82.0 81.9
Hersey NR1 NR1 91.0
Carlsbad NR2 NR2 NR2
Mosaic Concentrates (Florida and Louisiana)
Uncle Sam - NR1 NR1
Faustina - NR1 NR1
New Wales - 93.6 93.3
Riverview - 93.6 96.2
Bartow - 95.1 95.7
South Pierce - 95.1 NR1
Mosaic Minerals (Florida)
Four Corners - 96.7 97.4
Wingate - 93.9 93.9
Hookers Prairie - 97.1 97.3
South Fort Meade - 99.7 99.8
Hopewell - 99.1 NR3
Notes: Blank = Insufficient data
Recycle rate based on daily recycle rate, daily water usage and total operating days in reporting year
NR1 - recycling/reuse data was not available for this facility at the time of report compilation.
NR2 - Sufficient monitoring equipment for recycling/reuse rates currently not in place.
NR3 - Facility ceased operations in 2011
South Pierce recycle rate data not available at reporting time.
Mosaic operations capture rainfall, a portion of which is impounded and utilized in the various production processes, with some discharged through permitted outfalls at Phosphate facilities. Traditionally, Mosaic has considered captured rainfall use as an "alternative water supply" and it is used in part to estimate recycle/reuse water usage rates at Florida concentrate and minerals operations.
Captured rainfall is not a regulated permitted freshwater use.

Biodiversity

EN11

Location and Size of Land Owned, Leased, Managed in or Adjacent to Protected Areas and Areas of High Biodiversity Value Outside Protected Areas

As of December 31, 2011, Mosaic owned or controlled about 328,000 acres of land in Florida related to our Phosphate mining operations. Approximately 100,000 acres of Mosaic's land holdings in Florida are either in the mine permitting process or have not yet entered the permitting process. For each permit, Mosaic works with a team of professional biologists, hydrologists and other specialists, and in conjunction with as many as 12 local, regional, state and federal regulatory agencies to ensure that all mined areas can be successfully reclaimed and to identify areas of high environmental sensitivity that should be protected.

As of December 31, 2011, Mosaic owns more than 18,000 acres (greater than 28 square miles) in Florida on which it has proposed, committed or executed conservation easements in order to ensure long-term protection of lands or waters of particular sensitivity. We operate three Canadian potash facilities, all located in the southern half of the province of Saskatchewan, including our solution mine at Belle Plaine, two interconnected mine shafts at our Esterhazy shaft mine and our shaft mine at Colonsay. Mosaic owns or leases over 500,000 acres in Saskatchewan for potash mining. Since shaft mining occurs at over 3,000 feet below surface, the only surface areas that are disturbed are the actual footprint of the mine shaft and the adjacent above-ground processing facilities.

EN12

Description of Significant Impacts of Activities, Products and Services on Biodiversity in Protected Areas and Areas of High Biodiversity Value Outside Protected Areas

Mining for Phosphate ore in Florida is primarily undertaken using surface mining techniques with large earthmoving equipment such as draglines. This is primarily because the ore body is overlaid by sandy soils with a high water table that is not conducive to underground mining. A dredging technique is utilized at our Wingate mine.

Discussions regarding ecological resource preservation are held between Mosaic and the regulatory agencies during the permit application process. Preservation areas can include floodplains, as well as high quality wetland or upland habitats. Such evaluations include the type and quality of the habitat, but also involve balancing the supply of phosphate, an important natural resource against what is generally a temporary disturbance of ecological resources.

During the phosphate mining process, parcels are directionally cleared for mining to allow highly mobile animals to move to adjacent undisturbed or preservation areas. In addition, Mosaic obtains permits to relocate specific species in compliance with federal and state laws. After permit approval, state law requires mining parcels to be recontoured and planted with an initial cover of vegetation within two years of the completion of mining activities. Once a particular parcel is mined and reclaimed, many vertebrates and invertebrates will repopulate the site. To ensure biodiversity, Mosaic may also restock the areas with certain species, such as the gopher tortoise, that may have previously resided on the parcel but had been moved from the site prior to mining.

Phosphate mining in Florida, representing our largest land impact, is heavily regulated by as many as twelve 12 local, regional, state and federal permitting authorities. This robust regulatory oversight, combined with: areas that are set aside from mining, reclamation practices that are best in class and monitoring activities such as the Horse Creek Stewardship Program and Peace River Monitoring Programs, which are designed to monitor for and protect against any significant permanent impact on biodiversity either within or outside of our property boundaries.

Potash mining operations in Canada and the United States utilize shaft mining techniques where impacts are highly localized. Therefore, the impacts to wildlife and habitats are similarly highly localized.

MM1

Amount of Land Disturbed and Rehabilitated

Amount of Land Disturbed and Reclaimed
Phosphate Operations (Florida) 2011
Acres Mined in 2011 2,255
Acres Reclaimed Through Vegetation in 2011 6,474
Acres Released in 2011 6,356
1975 thru 2010
Acres Mined 7/1/1975 through 12/31/2010 127,554
Total Reclamation (Vegetated + Released) 87,490
Reclaimed Acres 1975 thru 2010
Acres Reclaimed Through Vegetation or Under Industrial-use Criteria 46,649
Acres Reclaimed and Released 40,841
Notes: Acres Released: Acreage from which reclamation has been performed and the area has been released from further reclamation obligation pursuant to Chapter 378, Florida Statute (FS) and Chapter 62C-16, Florida Administrative Code (FAC)
Acres Reclaimed through Vegetation or Under Industrial Use Criteria: Acreage on which contouring and final vegetation has been completed. Some of the acres includes lands granted permission to allow reclamation of mandatory lands to an alternate use and have been reclaimed for its intended use.
Total Reclamation is sum of Acres Reclaimed through Vegetation or Under Industrial Use Criteria and Acres Released
All data through December 31,2010 compiled from Florida Department of Environmental Protection's Bureau of Mining and Minerals Rate of Reclamation Report 2010

EN13

Habitats Protected or Restored

In our Phosphate mining operations, we restore or reclaim every acre of land that is impacted by our activities, with certain areas of high environmental sensitivity set aside for preservation. Mined lands are reclaimed to land uses such as wetlands, uplands, wildlife habitats, parks, neighborhoods and agricultural lands. Much of this land is also suitable to future conventional development such as housing and commercial use.

Mosaic planted 2,300,000 trees during 2011, reclaiming wetlands and significant upland habitats on an acre-for-acre basis per permitting requirements.

Additionally, Mosaic works closely with one of our primary regulators, the Florida Department of Environmental Protection (FDEP) Bureau of Mining and Minerals Regulation to integrate habitat networks and wildlife corridors into our reclamation planning efforts. The FDEP created and implements and encourages permittees to participate in the development of an Integrated Habitat Network (IHN) to benefit the water quality and quantity in the area, improve wildlife habitat and serve as a connection between the mining region's rivers and significant environmental features outside the mining region.

Mosaic has fostered partnerships with, and funding for, a variety of NGOs and academic institutions to advance our understanding of the habitats we manage through reclamation. Examples of these groups include the Tampa Bay Watch, The Nature Conservancy and Audubon of Florida.

EN14

Strategies, Current Actions and Future Plans for Managing Impacts on Biodiversity

Mosaic is committed to minimizing our impacts on the environment through responsible mine planning, permitting, operation and reclamation practices.

The Florida Department of Environmental Protection's Bureau of Mining and Minerals Regulation (BMMR) oversees mining operations in Florida. The mine permitting process includes performing extensive ecological, wildlife and hydrological surveys, impact studies, establishment of boundaries for preservation of areas identified as having important ecological value and the preparation of a Conceptual Reclamation Plan (CRP). The CRP is inclusive of the entire mining area, as well as preserved areas beyond the operational boundaries. The CRP includes evaluation of site topography, surface water hydrology and impacts to habitats. The CRP also includes the reclamation plan and outlines the project time frame. Additionally, the United States Environmental Protection Agency, through its delegation to the FDEP, oversees protection of water quality for storm water, ground water and surface water originating from mined areas.

Phosphate and Potash operations' interaction with wildlife in the United States is regulated by state agencies and by the United States Fish and Wildlife Service. These state and federal agencies maintain lists of species and management plans that vary by agency. Mosaic works closely with these regulators not only to ensure compliance with management plans but to fund and conduct research, with the goal of conservation of wildlife and conservation of ecological habitats and wildlife.

Mosaic utilizes a combination of database searches and geographic information system (GIS) mapping in conjunction with field surveys to document the occurrence or determine the potential for occurrence of state and federally listed floral and faunal species within operational areas. Mosaic evaluates potential impacts on plant and animal species based on those protected by applicable local, state and federal regulations. Wildlife surveys are performed prior to the submission of mine permit applications. Once approved, but prior to mining, species relocations or nest removal for certain avian species may occur—with proper permits. Nest removals, regardless of the species, require all eggs to have hatched and that no flightless young be reliant on the nest. Approximately six months prior to the area being disturbed another pre-clearing wildlife survey is performed to ensure all species and precautions are accounted for in compliance with all federal and state laws.

Significant electrical infrastructure is required to support phosphate mining operations. For Mosaic, as for electrical utilities, electrical structures present a risk of avian injury or mortality. Consequently, Mosaic developed an Avian Electrocution Prevention Plan (AEPP), submitted to the U.S. Fish and Wildlife Service (USFWS) and Florida Fish and Wildlife Conservation Commission (FWC). This plan, under which Mosaic currently operates, specifically targets retrofitting the lines and facilities that pose the greatest risk of electrocution to large avian species, based on their nesting and feeding sites The plan demonstrates and furthers Mosaic's long-standing corporate policy of wildlife protection and wildlife habitat management and restoration.

In our Potash facilities located in Saskatchewan, Canada, our approach to evaluating potential impacts to biodiversity includes biological assessments of proposed expansion sites. These assessments include field surveys to identify rare species of plants, birds, mammals, reptiles and amphibians of special concern that may be impacted. Survey methods followed those recommended by the Saskatchewan Conservation Data Centre. Biological assessments for the proposed Phase IV and V Brine Ponds at the Esterhazy K2 site, tailings expansion area at our Colonsay mine site, K1 Pond F expansion areas and the entire Esterhazy K3 mine site also followed this approach.

The potash mine in Carlsbad, New Mexico has developed an Avian and Bat Protection Plan (AVBP) to minimize risks to migratory birds and bats that can be attracted to mining and milling areas. Mosaic has also partnered with the U.S. Fish and Wildlife Service (FWS) to study risks associated with migratory birds and bats in order to develop future strategies aimed at reducing avian and bat mortality.

MM2

The Number and Percentage of Total Sites Identified as Requiring Biodiversity Management Plans According to Stated Criteria, and the Number (Percentage) of Those Sites with Plans in Place.

All active sites within the United States and Canada operate in compliance with federal, state/provincial and local regulations related to management of habitat and wildlife. Phosphate mining operations within the United States require extensive assessment of the proposed area of operation. Mosaic performs environmental site assessments, impact studies and hydrologic modeling, and prepares conceptual reclamation plans prior to receiving a permit to operate on a parcel of land.

Biodiversity in flora and fauna is an important part of reclamation. Most mitigation plans have biodiversity requirements that must be monitored by qualified ecologists and reported to appropriate regulatory agencies as part of permit conditions or regulations. In fact, compliance with these biodiversity standards is a requirement that must be met before regulatory agencies will deem a site successfully reclaimed.

EN15

Number of IUCN Red List Species and National Conservation List Species with Habitats in Areas Affected by Operations, by Level of Extinction Risk

International Union for Conservation of Nature (IUCN) Red List of Species Possibly Affected By Operations
IUCN Red List Designation Phosphate Operations
(Florida)
U.S. Potash Operations
(New Mexico)
Canada Potash Operations
(Saskatchewan)
Endangered 0 0 0
Vulnerable 3 - Florida Mouse, Gopher Tortoise and Florida Scrub Jay 1 - Sagebrush Dune Lizard 0
Near Threatened 2 - Gopher Frog and Short Tailed Snake 0 0
Least Concern 18 - Burrowing Owl, Florida Black Bear, Sandhill Crane, Florida Pine Snake, Least Tern, Limpkin, Little Blue Heron, Osprey, SE American Kestrel, Sherman's Fox Squirrel, Snowy Egret, Tricolored Heron, White Ibis, Wood Stork, Eastern Indigo Snake, Northern Crested Caracara, American Alligator and Bald Eagle 8 - American White Pelican, American coot, Northern shoveler, Ruddy duck, Teal, merganser, Western Grebe, Common Loon 5 - Eastern Cottontail, Northern Leopard Frog, Turkey Vulture, Bobolink, Red-Headed Woodpecker
Notes: Avian species listed as affected or possibly affected are migratory species with potential migration patterns proximal to the Carlsbad, New Mexico, potash mine.
The table includes species and designations of the IUCN and not species and designations of federal or state/provincial agencies in the United States and Canada, by which Mosaic monitors threatened species.

The following list includes species designated by the United States or the state of Florida as possibly affected by our operations:

State Listed Species Affected or Possibly Affected in Our Florida Phosphate Operations:

  • Burrowing Owl
  • Gopher Frog
  • Gopher Tortoise
  • Florida Black Bear
  • Florida Mouse
  • Florida Sandhill Crane
  • Florida Pine Snake
  • Least Tern
  • Limpkin
  • Little Blue Heron
  • Osprey
  • SE American Kestrel
  • Sherman's Fox Squirrel
  • Short-tailed Snake
  • Snowy Egret
  • Tricolored Heron
  • White Ibis

Federal Listed Species Affected or Possibly Affected in Our Florida Phosphate Operations:

  • Wood Stork
  • Eastern Indigo Snake
  • Northern Crested Caracara
  • Florida Scrub-Jay
  • American Alligator
  • Bald Eagle

Mosaic's Phosphate and Potash operations' interaction with wildlife in the United States is regulated by state agencies (Florida Fish and Wildlife Conservation Commission and New Mexico Game and Fish) and federally by the U.S. FWS. These state and federal agencies each have their own lists of species and management plans that vary by agency. Mosaic works closely with these regulators not only to ensure compliance with management plans, but to fund and conduct research with the goal of conservation of wildlife and conservation of ecological habitats. Mosaic does not specifically track wildlife species per the IUCN Red List designations, but instead tracks species as designated by regulatory agencies with authority in the regions in which we operate.

For example, the area near our Florida phosphate mining operations is home to species listed by federal or state authorities as endangered, threatened or of special concern. Potential impacts have been comprehensively evaluated for each potential mining area. Wildlife agencies have determined that operations would have no impact on those species, or that impacts could be mitigated by minimizing operations in sensitive habitats, creating new habitats for relocation and raising awareness of potential impacts among workers. In our Potash business unit, the rare and endangered species are evaluated as part of our biological assessments for expansion projects.

Below is some specific information on Mosaic's programs for the gopher tortoise and Florida scrub jay.

The gopher tortoise is a protected species within Florida (under the FWC), and currently is designated as "warranted but precluded" by the federal government to potentially become protected by the U.S. FWS. The current state listing as "threatened," means that there are several laws, guidelines, and permitting/protection measures necessary to implement when working near or within tortoise habitat, or when we need to relocate tortoises out of harm's way. The laws in particular protect the tortoise and tortoise burrow from any disturbance without prior permit approval and furthermore relocating tortoises from their habitat. The laws in particular protect the tortoise and tortoise burrow from any disturbance without prior permit approval.

Mosaic has an extensive gopher tortoise relocation program. In 2011, we relocated 754 gopher tortoises, including 179 juveniles. In addition, we relocated or were allowed to move out of harm's way a total of 57 commensal species (other animals that live in a gopher tortoise burrow), representing more than 20 different species. Tortoise burrows provide a home for over 350 documented species, including animals like frogs, crickets, snakes and small mammals.

The Florida scrub jay is currently listed as a threatened species and is protected by FWS. Much like the gopher tortoises, particular permitting procedures have to be followed when operations are present potential scrub jay habitat. Mosaic has developed a long term scrub jay translocation program with the primary goal of removing local population fragmentation in favor of a healthy core population on a large expanse of habitat. During our permitting process we worked with the FWS, FWC and the U.S. Army Corp of Engineers as well as a team of expert consultants to obtain all proper permits.

From 2003-2011, Mosaic has translocated 51 scrub jays from areas of poor habitat slated for mining to the Mosaic Wellfield. The Wellfield is a Mosaic owned approximately1,000-acre scrub habitat located in Manatee County just north and south of SR 64. As of June 2011, the Wellfield scrub jay population has grown from one breeding pair and three individual birds to 26 breeding pairs or family groups comprised of 84 individuals occupying the Wellfield and/or adjacent managed properties owned by the county (Duette Preserve) and the state (SWFWMD).

Emissions, Effluents and Waste

EN16

Total Direct and Indirect Greenhouse Gas Emissions by Weight

Worldwide Greenhouse Gas Emissions
(tonnes CO2e)
2009 2010 2011
Direct Emissions 2,218,355 2,580,052 2,142,600
Indirect Emissions 1,577,560 1,684,003 1,450,790
Total 3,795,915 4,264,055 3,593,390
Notes: Direct emissions include Mosaic's consumption of natural gas, sulfur, diesel and other fuels.
Indirect emissions include electricity purchased from third party utilities.
Mosaic uses guidance from the CDP for calculating and reporting carbon dioxide equivalence (CO2e)

Mosaic's reported 2011 direct and indirect CO2e emissions data was reviewed and provided a statement of assurance by Trucost in accordance with AA1000AS standards. Mosaic has established targets for an overall 10% reduction of absolute emissions and a 5% reduction in emissions intensity per tonne of product produced for the Phosphate business unit, by 2015 from 2005 levels. These targets exclude emissions associated with ammonia production and our Potash business unit.

EN17

Other Relevant Indirect Greenhouse Gas Emissions by Weight

Ammonia Purchases

We are reporting ammonia purchases as a Scope 3 emission in our Carbon Disclosure Project reporting for 2012. Emissions are as follows:

Ammonia Purchases
(tonnes C02e)
2009 2010 2011
7,604,725 7,871,445 9,164,055

Greenhouse gases from purchased ammonia are based on European Fertilizers Manufacturer Association guidance for a modern ammonia plant. Our purchases of ammonia increased in 2011 due to a reduction in ammonia production. Mosaic is reviewing expansion of an ammonia production plant that would reduce the amount of purchased ammonia in the future.

Transportation of Raw Materials and Products

Transportation is a large contributor of greenhouse gas emissions for companies globally. Mosaic is currently reviewing transportation greenhouse gas emissions, based on worldwide sourcing of raw materials and distribution of our products, and the substantial amounts of our products and materials moved.

Transportation of Workers and Company Travel

Mosaic has not analyzed data in this area regarding greenhouse gas emissions. However, we have several initiatives to reduce employee travel, including the LEED certified head office in Florida that was strategically placed to consolidate employee travel to one site. The Colonsay Mill Dry complex was also built to LEED silver standards. Please refer to Section EN7.

EN18

Initiatives to Reduce Greenhouse Gas Emissions and Reductions Achieved

Mosaic is taking a proactive approach to reductions in emissions, with particular emphasis on improving energy efficiency and waste management. In 2011, substantial reductions were achieved in U.S. electrical purchases related to improvements in energy efficiency and internal power production capacity from non-greenhouse gas sources.

Although the U.S. Environmental Protection Agency (EPA) Climate Leaders program has ended, Mosaic continues to use program guidance to assess greenhouse gas emissions. The recent U.S. EPA mandatory reporting rule has established specific areas of Mosaic operations to monitor for greenhouse gas emissions and provide data quality assurance standards and procedures to insure high-quality data gathering.

In 2011, Mosaic's production of potash has increased approximately 22%, during which time the absolute company-wide emissions have decreased by approximately 16%. Our Phosphate business unit also increased overall production while direct greenhouse gas (GHG) emissions decreased approximately 16% since 2010 and approximately 26% since 2008. Disruptions to internal production of ammonia also contributed to the reductions in energy consumption and related GHG emissions. Indirect GHG emissions decreased approximately 13.8% since 2010 and decreased approximately 56% since 2008. Reductions in direct and indirect emissions during this period are notable as production of phosphate, potash and other product lines have increased during the same period.

Mosaic initiated the ROICworks! (return on invested capital) program in our Phosphate facilities and Momentum in our Potash facilities to improve energy efficiencies. These programs have a dedicated budget and full-time staff allocation. The goal of ROICworks! and Momentum is to make our businesses more efficient and effective by growing value, increasing our return, transforming business practices, reinventing our culture and taking accountability. Focus areas to date are procurement optimization (bidding, consolidation of vendors and materials, and consumption of process chemicals); maintenance workflow or execution efficiency, which translates into reduced contractors; overtime and Mosaic personnel, energy, and operations effectiveness through the understanding of our organization's "health" or readiness to change and execute change; implementation of a performance management process (metrics-driven top to bottom along with a cadence of effective discussions and action over those metrics); and OEE, or asset utilization optimization (downtime and utilization improvements to increase production where needed or decrease emergency downtime, assets needed, etc.).

In 2011, ROICworks! energy efficiency improvements and initiatives reduced CO2e emissions in our Phosphate business unit by approximately 27,000 tonnes annually and increased the capacity of our concentrate plants.

Examples of Energy Management and Reduction Are:

Since 2005, Mosaic has reduced total direct and indirect energy consumption by approximately 26%. In 2011, approximately 1.2 million tonnes of CO2e emissions were avoided by the production of approximately 6.9 million GJ of electricity through cogeneration at our operations. We also averted approximately 17,300 tonnes of CO2e in Brazil by purchasing almost 100% of our electricity from hydroelectric sources.

EN19

Emissions of Ozone-depleting Substances by Weight

Mosaic does not produce CFCs, HCFCs, halon or methyl bromide in any of our operations. Refrigerants utilized in air conditioning units at our offices and production facilities represent a nominal quantity, and only appropriate outside firms or certified internal technicians maintain these units. Ozone-depleting substances are phased out as required when units are replaced.

EN20

NOx, SOx and Other Significant Air Emissions by Type and Weight

Mosaic recognizes the importance of careful air emissions management and proactive reduction of these emissions from our operations. We use published emission factors and engineering estimates as well as analytical stack sampling results to calculate the following Criteria Air and Other Pollutant emissions for Phosphate and Potash operations.

Criteria Air and Other Pollutants
(in '000 tonnes)
2009 2010 2011
NOx 2.26 2.70 3.54
CO 0.70 0.85 0.94
PM 2.10 3.73 3.96
SO2 17.32 22.70 16.94
VOC 0.17 0.17 0.16
NH3 1.01 0.77 0.63
FL 0.08 0.15 0.16
H2S 0.004 0.014 0.015
SAM 0.07 0.14 0.14
HF 0.13 0.38 0.47
Notes: 2011 SO2 changes due to changes in production rates, technology upgrades, catalyst replacements and temporary shutdowns.
HF increases due to emission factor revisions and changes in production rates.
Other changes due to emission factor revisions and production changes due to market fluctuations.
Mosaic's 2009 and 2010 data for VOC emissions updated following revisions to data management and calculations.

Mosaic's 2011 total Criteria Air Pollutants (CAP) emissions represent reductions of approximately 14% since 2010 and 8% since 2008. Nitrogen oxide (NOx) emissions increased by 31% since 2010, and levels of most other compounds fluctuated within historical margins except for emissions of sulfur dioxide (SO2) , which decreased by approximately 25% company-wide since 2010 and 18% since 2008. SO2 reductions were primarily a result of an approximately 77% decrease in SO2 emissions at our Uncle Sam production facility since 2010. The reduction of SO2 emissions at Uncle Sam was due to several factors: In late 2010, Mosaic installed a new scrubber technology (CANSLOV) at our A-Train plant and replaced a catalyst at our D-Train plant as part of $30 million investment in emissions control upgrades in compliance with Clean Air Act emissions criteria; the Uncle Sam facility was temporarily shut down from May 10, 2011 to June 16, 2011, due to high water levels in the Mississippi River; overall sulfuric acid production decreased by approximately 21% compared to 2010. Mosaic will be better able to track emissions trends at this facility after completion of additional upgrades at the Uncle Sam facility scheduled to occur in 2012. Net emissions are directly correlated to production levels that can fluctuate year to year based on market conditions and other factors.

EN21

Total Water Discharge by Quality and Destination

Mosaic discharges from phosphate facilities are carefully monitored by Mosaic's environmental professionals to ensure compliance with National Pollutant Discharge Elimination Systems (NPDES) permits and local and state regulations. Phosphate operations in Florida discharge treated surface water after processing by advanced water treatment techniques, and also comply with NPDES permit criteria. A significant percentage of the total outfall from Phosphate operations is from rain water, and discharge rates can vary year to year according to levels of precipitation. The following table summarizes the total water surface discharge from our Phosphate operations in Florida and Louisiana. Mosaic's Phosphate facilities in Louisiana have permitted outfalls that discharge water to the Mississippi River. Mosaic's Potash facilities in Canada do not discharge into off-site water bodies.

Total Water Discharge - Mosaic Phosphate Business Unit
Units 2010 2011
Phosphates Business Unit Annual Outfall Discharges Billion Gallons 106.765 47.232
Phosphates Outfall Discharge Annual Phosphorous Loadings Tonnes 2,216 1,785
Phosphates Outfall Discharge Annual Nitrogen Loadings Tonnes 228 123
Phosphates Outfall Discharge Annual TSS Loadings Tonnes 9,129 6,388
Phosphates Outfall Discharge Annual Sulfates Loadings Tonnes 27,119 20,872
Note: Outfall gallons and loading data for 2010 revised upon receipt of additional data.

EN22

Total Weight of Waste by Type and Disposal Method

Mosaic's operations generate a variety of nonhazardous solid wastes, including domestic refuse, construction and demolition debris, waste lubricants and spent sandblast media. Recycling programs are established at all Mosaic facilities, including offices, mines and production facilities, in order to reduce the volume of wastes for disposal.

Mines and Production Facilities

Mining and processing of potash and phosphate produce residual materials that must be managed. Potash tailings, consisting primarily of water, salt and clay, are stored in tailings management areas. A portion of the salt can be recycled depending on site location and processing facilities. Phosphate clay residuals from beneficiation are deposited in clay settling ponds. Processing of phosphate rock with sulfuric acid generates phosphogypsum that is stored in phosphogypsum stack systems (gypstacks). Sand tailings from phosphate mining are primarily reused during reclamation. The volumes of these byproducts are a function of production rates.

Mosaic is actively conducting research on alternative uses of phosphate clay settling areas in Florida in order to minimize our footprint. Future uses of these areas may include natural habitats, agricultural production, recreation, tree farms and alternative energy production. The following tables summarize wastes generated directly from mining and production of potash and phosphate.

Mining Wastes Generated and Disposal Method
(in tonnes)
Material 2010 2011 Disposal Method
Phosphate
Overburden 133,634,000 163,931,613 Used for Reclamation
Tailings 38,655,000 30,885,900 Used for Reclamation
Clay 11,949,000 12,798,551 Dried in Surface Impoundment
Phosphogypsum 19,381,000 20,134,000 Stored in Gypstacks
Potash
Tailings (Salt) 9,925,000 12,443,000 Storage or Recycled for Commercial Use
Brine 4,849,000 5,936,000 Deep Well Injection

Mosaic's mines and production facilities use earthmoving equipment, heavy machinery, locomotives, rail cars, trucks and other vehicles and miscellaneous equipment that generate wastes as a result of regular maintenance. Mosaic's recycling program identifies materials that can be recycled rather than sent to landfills. The following table summarizes materials recycled by Florida's Phosphate mines and production facilities.

Recycled Wastes from Mosaic Phosphate Business Unit (Florida Only) 2011
Material Quantity Unit
Oily Water 20,264 Gallons
Used Oil 22,180 Gallons
Used Oil Filters 20,750 Pounds
Waste Grease & Rags 284,469 Pounds
Fluorescent Lamps 1,455 Pounds
High-Intensity Lamps 1,865 Pounds
Aerosol Cans 1,080 Pounds
Sand Blast Media 54 Tons
Note: The above data is specific to Mosaic's U.S. Phosphate business in Florida.

At Esterhazy, Mosaic's K1 facility reclaims portions of waste salt for sale as road salt, while K2 reclaims waste salt for backfill to stabilize inflow areas. In addition, our Belle Plaine facility reclaims waste salt for use in water softening and the food industry.

In fiscal 2011, Mosaic's phosphate mining and beneficiation facility at Hookers Prairie in Florida minimized waste generation and identified waste to be recycled or converted to energy, saving approximately $395,000 in disposal costs and resulting in suitable wastes being sent to a waste-to-energy plant. In 2011, Mosaic's Riverview facility recycled 2,849 tonnes of concrete and 1,130 tonnes of scrap metal.

Distribution

Mosaic transports approximately 20 million tonnes of raw and finished materials via railcar annually. Every railcar must be thoroughly cleaned after products are offloaded to customers. As a result, small amounts of residual materials are generated from each railcar during cleaning. This residual fertilizer is reprocessed by a third party and used by local farmers. In 2011, 3,948 tonnes of this reprocessed material was recycled that otherwise would have been disposed of in landfills.

Offices

Each of our major offices worldwide participates in a paper/glass/metals recycling program. Mosaic is also reviewing its printing practices, with an aim of increasing printers' dormant modes and defaulting all its printers to double-sided printing to save paper, energy and toner usage. As an example, in 2011 Mosaic's LEED Gold certified office building at FishHawk recycled 4,036 cubic feet of shredded paper and 644 cubic yards of single-stream waste. Single-stream waste includes paper, cardboard, plastics, glass and metals. Employees can deposit all of these materials into a single waste container that is transported off-site to a processing facility where the materials are segregated and recycled.

MM3

Total Amounts of Overburden, Rock, Tailings, and Sludges and Their Associated Risks

Amount of Overburden
(in tonnes)
2010 2011
Phosphate Operations
Overburden 133,634,000 163,931,613
Sand Tailings 38,655,000 30,885,900
Clay 11,949,000 12,798,551
Potash Operations
Salt 9,925,000 12,443,000
Brine 4,849,000 5,936,000

Mosaic uses best industry practices to manage overburden, tailings and byproducts associated with our mining and production. In addition, Mosaic complies with federal, state and local regulations related to these materials.

Mining and processing of potash and phosphate generate residual materials that must be appropriately managed. Potash tailings, consisting primarily of salt and clay, are stored in tailings management areas. Phosphate clay residuals from mining are deposited in clay settling ponds. Processing of phosphate rock with sulfuric acid generates phosphogypsum that is stored in gypstacks. Surface impoundments for the management of these materials are constructed in compliance with professional engineering standards and regulatory requirements.

Portions of excess salt generated from potash mining is processed and then utilized for commercial purposes, including road salt, water softener salt, use in food grade products and industrial uses.

EN23

Significant Spills

Environmental Releases
Number of Significant Reportable Releases
FY2011 FY2012
Mosaic Business Unit    
Potash 10 8
Phosphates 4 2
Distribution 0 0
International 0 0
Total Significant Releases 14 10
Notes: Table includes environmental releases greater than 2,000 gallons. They were not significant enough to report in our financial statements.
Releases identified for Potash facilities involved releases of brine and/or raw ore. Releases identified for Phosphates facilities involved releases of stormwater, process water and fuel oil.

EN24

Weight of Transported, Imported, Exported or Treated Waste Deemed Hazardous

Mosaic facilities generate only small volumes of hazardous wastes and they are typically nonprocess related wastes. In the U.S., Mosaic facilities are either Small Quantity or Conditionally Exempt Small Quantity Generators (all U.S. facilities each generate less than 2,200 pounds of waste per month). Canadian facilities comply with all national regulations regarding these materials. The types of hazardous wastes generated typically include spent cleaning solvents, paint-related wastes and some spent laboratory chemicals. Each location has an appropriate hazardous waste management system to ensure that the wastes are properly and safely disposed. The primary method of disposal is incineration by a licensed contractor. No hazardous wastes are shipped internationally for disposal.

EN25

Identity, Size, Protected Status and Biodiversity Value of Water Bodies, and Related Habitats Significantly Affected by the Reporting Organization's Discharge of Water and Runoff

The discharge of water and runoff from Mosaic mining and fertilizer manufacturing is a highly regulated activity that has stringent reporting and compliance requirements. The release of water via storm water or discharge must comply with these requirements. The standards enforced by the regulatory authorities are designed to protect water bodies and associated habitats from degradation and secondary environmental impacts.

Some key examples at our major facilities are:

  • In Florida, our operations occur in the following basins: Peace River; Alafia River; Myakka River; and Little Manatee River. Any releases are subject to permitting that regulate to maintain ecological integrity and ensure impacts are minimized.
  • In Louisiana, our Faustina and Uncle Sam plants intake and outfall to the Mississippi River. This process is highly regulated by the state to ensure that gross contaminant levels are acceptable.
  • For our Canadian Potash operations, we have no off-site releases of water or runoff as part of normal operations.

Products and Services

EN26

Initiatives to Mitigate Environmental Impacts of Products and Services

Mosaic has a dedicated agronomy team that conducts field trials to evaluate the performance of our products and develop recommendations to mitigate any potential environmental impact. In 2011, we conducted nearly 600 trials in Argentina, Brazil, Chile, China, Canada, India, Northern Latin America (Mexico to Peru) and the U.S. These trials were conducted by highly-regarded private researchers and universities that follow rigorous scientific standards.

Mosaic is collaborating with Dr. Fred Below, a crop sciences professor and researcher at the University of Illinois, to develop advanced agronomic systems aimed at sustainably increasing corn productivity by combining fertilizer best management practices with other agronomic technologies. Dr. Below's research evaluates nutrient requirements of modern corn hybrids and soybean varieties under different field conditions. A complete understanding of field conditions is a pre-condition of a balanced crop nutrition program.

Educational Tools

Mosaic has developed a number of educational initiatives targeting both growers and dealers to help them understand fertilizer best management practices as a way of reducing environmental impact.

Back-to-Basics is a web-based resource that helps keep growers and those who influence fertilizer management decisions informed about trends in soil fertility, balanced crop nutrition and new agronomic practices. Materials such as newsletters, guides and quizzes are available.

The Balanced Crop Nutrition Guide is a valuable resource for growers striving for next-generation yields, and is also a great tool for our retail customers. The guide contains more than a dozen articles about best management practices on soil fertilizer from industry-leading researchers. This guide has been distributed to more than 400,000 growers and remains available in electronic format on the Mosaic website.

The Mosaic Nutrient Removal application, available online from iTunes®, provides growers and retailers with nutrient removal estimates of key crops in support of higher yields and efficient use of fertilizer. Utilizing years of agronomic research, the application is the next-generation format for the data in the Balanced Crop Nutrition Guide. The application was selected by CropLife magazine as a best app for agriculture for 2012.

Industry Initiatives

The Nutrient Use Geographic Information System (NuGIS) is a web-based application developed by IPNI that integrates multiple tabular and spatial datasets to create county-level estimates of nutrients applied in fertilizer and livestock manure, nutrients removed by harvested agricultural crops and the resulting balance. Mosaic's membership in the IPNI helps fund this North American database. We have leveraged this information by providing reports specifically for our customers to help them assess nutrient use efficiency and balance.

4R Nutrient Stewardship (4Rs) is about doing everything "right" in regard to fertilizer application and effectively reducing agriculture's potential for negative externalities. The 4Rs is an innovative and science-based approach that when applied offers enhanced environmental protection, increased production, increased farmer profitability and improved sustainability. The concept is to use the Right fertilizer source, at the Right rate, at the Right time, in the Right place. For fertilizer use to be sustainable, it must support cropping systems that provide economic, social and environmental benefits. Because the 4Rs is critical for sustainability, Mosaic's goal is to partner with the fertilizer industry to enhance understanding, adoption and promotion of 4R Nutrient Stewardship among stakeholders.

To help address this challenge, TFI has been working collaboratively with the IFA, the IPNI and the CFI to advance the 4R Nutrient Stewardship initiative. Two goals of the initiative include establishing 4Rs as a recognizable strategy for economic, social and environmental sustainability and expanding the adoption of 4R Nutrient Stewardship globally.

Partnerships

Mosaic established and continues to fund the Mosaic Fertilizer Technology and Research Centre at the University of Adelaide, Australia. The Centre focuses on soil chemistry and fertilizer technology, and utilizes the latest technology to develop innovative fertilizer formulations to improve nutrient use efficiency.

The Mosaic Company is a founding partner in the "Keep It for the Crop by 2025" (KIC by 2025) initiative. Illinois agriculture organizations created a program to promote, implement and track the rate of adoption of enhanced nutrient stewardship practices by Illinois agricultural producers. KIC by 2025 will focus on the 4Rs. The Illinois Environmental Protection Agency has identified six priority watersheds for nutrient reductions including Lake Bloomington, Lake Vermilion, Lake Decatur, Vermilion River, Salt Fork Vermilion River and Lake Mauvaisse Terra. KIC by 2025 endorses efforts to promote voluntary action by producers to adopt nutrient stewardship practices in their watersheds. KIC by 2025 offers a framework to continually promote, implement and measure adoption of the 4Rs by producers and agricultural retailers that provide custom nutrient applications.

Mosaic also has a long-term partnership with Dr. Ismail Cakmak (Sabanci University, Turkey), a globally recognized plant nutrition expert, whose research focus is balanced crop nutrition and nutrient interactions conducted through greenhouse experiments.

The Mosaic Company partners with The Nature Conservancy as it conducts a three-year conservation pilot in three watersheds in the Upper Mississippi River basin, including the Root River in southeastern Minnesota, the Boone River in northern Iowa and the Mackinaw River in central Illinois. The Conservancy works with local partners, including farmers, in those watersheds to implement and study conservation techniques that best lower nutrient and sediment concentrations by reducing runoff from agricultural landscapes. Through this project, the Conservancy seeks to determine which tools work best in a larger, sub-watershed system, and will then communicate findings to crop producers to guide their farm stewardship decisions.

EN27

Percentage of Products Sold and Their Packing Materials that are Reclaimed by Category

Mosaic products, predominantly fertilizer and animal feed ingredients, are used in various stages of agricultural operations with multiple steps and biological processes. To the extent possible, bulk transport is used to minimize the need for extensive packaging throughout the supply chain. Agricultural operation processes are not within Mosaic's purview to control; however, the nutrient elements of our products often are recycled into these or other agricultural systems. Examples of these systems include:

  • Fertilizer is applied to the soil and then taken up by plants; the plants can be used for human or animal food. This food is processed and excreted by humans and animals as manure or biosolids, which may be recycled and used as nutrients similar to fertilizers, depending on infrastructure (e.g., publicly owned treatment works (POTW) reuse water distribution systems).
  • Animal feed materials are taken up by animals as food and excreted as manure. These materials may be recycled and used as nutrients similar to fertilizers, depending on infrastructure (e.g., feed lot versus free-range grazing).

To further encourage stewardship of our products, Mosaic has formed a product stewardship team from various disciplines and is pursuing opportunities to cooperate with supply chain and logistical partners to identify and implement stewardship enhancements on a global basis.

A reclaimed product example is our use of sulfur, which is a coproduct of the petroleum industry and is reclaimed from the crude oil desulfurization process. Our use of this product prevents an excess of sulfur that otherwise could be disposed of in landfills.

Finally, Mosaic supports and helps promote TFI's Bulk Blend Workshops and Manual, which eliminates the need for packaging of major raw materials or the final product. This process completely eliminates the need for bags, as the product is transferred from dealer to farmer. Because of the sizing and blending capabilities of our bulk materials, we encourage the use of the bulk blending and delivery system in farming operations.

Compliance

EN28

Monetary Value of Significant Fines and Total Number of Nonmonetary Sanctions for Noncompliance with Environmental Laws and Regulations

Significant Fines and Sanctions
2011
Environmental Fines $9,600
Note: includes one fine paid in 2011 due to a late submission of an emissions report at the Carlsbad, New Mexico Potash facility

Transport

EN29

Significant Environmental Impacts of Transporting Products and Other Goods and Materials Used for the Organization's Operations, and Transporting Members of the Workforce

Mosaic moves approximately 50 million tonnes of raw materials, work-in-progress and finished products each year.

To compare fuel efficiency, the industry standard is to measure tons of product moved, per miles, per gallon of fuel (tons/miles/gallons).

The following chart compares the efficiency of the various modes of transportation that Mosaic uses to move our raw materials, work in progress and finished goods.

The most fuel efficient transport is by Panamax vessels, which carry approximately 50,000 tonnes of cargo great distances. In North America, cross-Gulf (Gulf of Mexico) barges are quite efficient. Conversely, trucks can carry approximately 20 tons and yield, approximately 155 tons miles per gallon.

For fiscal 2011, our spending on North American transport of materials and products were divided across modes as follows.

The following table summarizes the amount of material transported and number of North American shipments.

Transport Mode and Weight
Transport Mode Number of Shipments Tonnage Transported Percent by Weight
Vessel 389 15,304,034 24%
Barge 3,411 5,334,956 8%
Rail 209,426 18,974,997 30%
Truck 212,837 24,309,952 38%
Notes: This table includes shipments of raw materials and finished product from origin to final destination that originated or ended in North America. Pass-through facilities are not included. Ammonia transported via pipeline not included.

Because diesel or a heating oil derivative fuels most of the transportation, the lowest-cost option for the customer is often the option that uses the least fuel and has the lowest potential environmental impact. The vast majority of our truck shipments occurs within Florida and is associated with time-sensitive intra-company shipments of sulfur, sulfuric acid and phosphate rock. In addition, the distance traveled in most cases is less than 50 miles, making trucks a generally less expensive and a more reliable solution.

  • Mosaic has funded and promoted TFI Bulk Blend Workshops and Manual. Transporting and distributing our crop nutrient products in bulk greatly reduces the amount of packaging required to deliver our product to consumers. Most of our crop nutrient products are transported from production facilities to consumers in bulk quantities; therefore, environmental impacts associated with packaging are eliminated. In some areas where small scale farmers purchase our products, bulk distribution is not possible.
  • Environmental impacts of transporting our materials are primarily related to GHG emissions. When distance traveled is less than 50 miles, trucking is generally the most reliable and cost effective mode of transport. During the 2011 reporting period, Mosaic and its trucking partners used various fuel-saving initiatives, including:
  • In Florida, we released a Request for Proposal for our transportation, stipulating the truck fleet utilize all natural gas rather than diesel fuel. Using natural gas versus diesel, will result in significantly lower emissions of particulates and nitrogen oxides (up to 50% lower) and greenhouse gases (potentially up to 25% lower). The transition to a new natural gas fleet for Mosaic is scheduled to occur in 2013.
  • Mosaic, along with our trucking partners, has implemented a number of fuel-saving initiatives, such as automatic engine shutoffs and reduced intra-company truck scaling. We have also invested in faster loading processes to both reduce fuel consumption and total trucks deployed.
  • Mosaic utilizes specialized Saddleback trailers to increase backhaul usage to reduce "dead head," or empty loads. These unique trailers can transport molten sulfur from the Port of Tampa to our production facilities and return to the Port with a load of our finished product for shipment to customers. Phosphate operations' port-to-plant trucking achieved a 65% rate of back-hauling in 2011, below our target of 90%, due to lower inventories at our facilities and high port inventories at periods throughout the year.

EN30

Total Environmental Protection Expenditures and Investments by Type

Mosaic has expended, and anticipates that we will continue to expend, substantial financial and managerial resources to comply with EHS standards, and continue to improve our environmental stewardship.

In fiscal 2012, we spent approximately $300 million for environmental capital expenditures, land reclamation activities, gypstack closure and water treatment activities.