Potash Fact Sheet

Potash Fact Sheet
April 2012
Growing Value
Through Brownfield Expansions
Mosaic is one of the largest potash producers in the world. We operate three mines
in Saskatchewan and two in the United States. We have a strong presence both in
North America and internationally. Product from our Canadian mines is exported through
Canpotex, an export association.
We plan to grow the value of our potash business through brownfield expansions.
Our ongoing expansions are expected to increase annual capacity by almost five million
tonnes over the next decade, ensuring that we will maintain our position as one of the
premier potash companies in the world. Our expansion program consists of nearly a dozen
discrete, multi-year projects at our three Canadian mine sites, and we can adjust the pace of
these projects in response to supply and demand dynamics.
In addition, we produce up to 1.3 million tonnes annually for a third party under a tolling
agreement. When this agreement expires at the beginning of calendar 2013, we will have full
access to 1.3 million tonnes of capacity at no additional capital cost.
Workers at Mosaic's Esterhazy mine stand in front of a
freshly cut ore vein.
MOSAIC POTASH ADVANTAGES
Why Crops Need Potash
Potassium is the regulator of crop
nutrients and provides the following
benefits to growing plants:
Century's worth of ore in Saskatchewan
Brownfield expansions underway at a competitive capital cost
• F ormation of larger and
deeper root system
• Reduction of water loss and wilting
• Regulation of nitrogen uptake
• Increased protein content
• Reduction of lodging from weak stalks
Tolling agreement capacity of up to 1.3 million tonnes will revert at no capital cost
Mature distribution channel through Canpotex and Mosaic international locations
POTASH CAPACITY EXPANSION
PROJECTED CAPACITY
POTASH EXPANSION PROJECTS
MILLION TONNES
PROJECTED
INVESTMENT
($ IN BILLIONS)
PEAKING
CAPACITY
(MILLION
TONNES)
0.0
0.0
0.2
0.1
0.5
0.7
2.0
0.6
0.5
1.7
2012
2013
2012-17
1.3
0.5
4.9
1.3
10.3
16.5
2016-19
2016
ESTIMATED
COMPLETION
(FISCAL YEAR)
18
15
CONSTRUCTION COMPLETE
Colonsay(a)
Esterhazy
12
9
CONSTRUCTION IN PROGRESS
Belle Plaine
Colonsay
Esterhazy
6
3
FUTURE
Belle Plaine
Colonsay
Tolling Agreement(b)
Capacity at May 31, 2011
(a) During 2011, 0.1 million tonnes was placed in service and included in operational capacity
(b) Reversion of tonnes under tolling agreement upon expiration
0
-200
2012
Existing
2015
Tolling
2018
In Progress
Future
2021
FISCAL YEAR
WORLD POTASH USE BY COUNTRY
MOSAIC POTASH
OPERATING EARNINGS & GROSS MARGIN
$ IN MILLIONS
600
MILLION TONNES K 2O
500
50%
400
40%
300
30%
200
20%
100
10%
0
FY2008
SOURCE: IFA DECEMBER 2010
SOURCE: MOSAIC
60%
FY2009
FY2010
Operating Earnings
FY2011
FY2012
China
5.3
Rest of World
8.2
Brazil
3.8
Malaysia
1.0
Indonesia
1.1
Forecasted 2010/2011 Fertilizer Year
Gross Margin %
WORLD POTASH SHIPMENTS
MOSAIC POTASH OPERATING RATE
MILLION TONNES FINISHED PRODUCT
United States
4.3
India
3.8
0%
SOURCE: MOSAIC
12
100%
9
75%
MILLION TONNES KCL
SOURCE: FERTECON AND MOSAIC
60
50
40
6
50%
3
25%
30
20
10
0
2007
2008
Production
2009
Peaking Capacity
2010
2011
FISCAL YEAR
Operating Rate %
0
0%
00
01
02
03
04
05
2010 POTASH INDUSTRY CAPACITY
K2O UPTAKE BY CROP
MILLION TONNES MOP
POUNDS PER ACRE
SOURCE: IFA, FERTECON, COMPANY
REPORTS AND MOSAIC
07
08
09
10
11E 12F 13F
CALENDAR YEAR
SOURCE: IPNI AND MOSAIC
500
PotashCorp
(a)
Uralkali ⁽⁾
Mosaic
06
Source: Fertecon, IFA and Mosaic estimates
400
(a)
Belaruskali
300
ICL
K+S
200
Qinghai Salt Lake
APC
Agrium
Mosaic MOP production:
12% Globally; 38% North America
100
SQM
0
3
6
9
12
World capacity approximates 70 million tonnes.
(a) Reflects capacity related to Esterhazy tolling agreement between
Mosaic and PotashCorp in which 1.3 million tonnes will revert to
Mosaic at the beginning of calendar 2013.
(b) Reflects combined Uralkali and Silvinit capacity.
15
0
Potatoes
500 cwt.
Corn
200 bu.
This fact sheet 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 economic and credit market conditions; 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, implementation of the U.S. Environmental Protection
Agency’s numeric water quality standards for the discharge of nutrients into Florida lakes and streams or possible efforts to reduce the flow of excess
nutrients into the Gulf of Mexico; further developments in judicial or administrative proceedings; difficulties or delays in receiving, increased costs of
or challenges to necessary governmental permits or approvals; the effectiveness of the Company’s processes for managing its 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 various items differing from management’s current estimates, including, among others, asset retirement, environmental
remediation, reclamation or other environmental regulation, or Canadian resources taxes and royalties; 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.
Cotton
1,500 lbs.
Rice
7,000 lbs.
Soybeans
Wheat
70 bu.
80 bu.
YIELD PER ACRE
The Mosaic Company
3033 Campus Drive
Suite E490
Plymouth, Minnesota 55441
800.918.8270 (phone)
763.577.2986 (fax)
www.mosaicco.com
© 2012 The Mosaic Company