Mosaic Invests in Bayovar Phosphate Project

PLYMOUTH, Minn., March 31 /PRNewswire-FirstCall/ -- The Mosaic Company (NYSE: MOS) announced today that it entered into an agreement with Vale S.A. and Mitsui & Co., Ltd. related to a proposed joint venture that will own the Bayovar phosphate rock mine being constructed by Vale in Peru.  Terms of the agreement include a 35 percent economic interest in the Bayovar phosphate rock mine along with a commercial offtake supply agreement that would give Mosaic the right to purchase 35 percent of the phosphate rock produced from the Bayovar mine.  The Bayovar rock will be used in Mosaic's global phosphate operations.  Total consideration to be paid by Mosaic to Vale for its stake in the joint venture will be $385 million.  The transaction is expected to close within the next three months.  Phosphate rock production at Bayovar and deliveries to Mosaic are expected to begin in the second half of calendar 2010.      

"This transaction advances our strategic objective to secure additional phosphate rock outside of North America," said Jim Prokopanko, Mosaic's President and Chief Executive Officer.  "Bayovar enhances Mosaic's existing 35-year phosphate rock reserves in Florida and reinforces our commitment to remain one of the top integrated phosphate producers in the world.  We look forward to our new partnership with Vale and Mitsui."  

The transaction is subject to the parties' finalization of a definitive shareholders' agreement and commercial offtake agreements, certain regulatory approvals and other customary closing conditions, which the parties expect to complete within three months.

About The Mosaic Company

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients.  For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients.  More information on the company is available at www.mosaicco.com.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and the effects of the current economic and financial turmoil; changes in the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation; difficulties or delays in receiving, or increased costs of, necessary governmental permits or approvals; the effectiveness of our processes for managing our strategic priorities; adverse weather conditions affecting operations in Central Florida or the Gulf Coast of the United States, including potential hurricanes or excess rainfall; actual costs of asset retirement, environmental remediation, reclamation or other environmental regulation differing from management's current estimates; accidents and other disruptions involving Mosaic's operations, including brine inflows at its Esterhazy, Saskatchewan potash mine and other potential mine fires, floods, explosions, seismic events or releases of hazardous or volatile chemicals, as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

Bayovar Fact Sheet

• Bayovar is located in the Sechura desert in Piura, Peru – on the northern coast of Peru
• The Bayovar 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
• Bayovar's expected production capacity will be 3.9 million tonnes, once full project capacity is reached, with a P2O5 grade comparable to Mosaic's Florida mines
• Bayovar infrastructure includes a beneficiation plant, 40-kilometer road, 5-kilometer conveyor, drying/storage silos, maritime terminal with 8 million tonnes annual loading capacity, a desalination plant for sea water and a mining camp
• Bayovar construction began two years ago; estimated start date for rock mine is in the second half of calendar 2010

SOURCE The Mosaic Company