Potash Fact Sheet

Potash Fact Sheet
October 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 of Canadian potash producers.
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 from inception of our expansions through the end of the 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.
Workers at Mosaic's Esterhazy mine stand in front of a
freshly cut ore vein.
In addition, we have been producing approximately 1.1 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 this at no additional capital cost.
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 peaking 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
ESTIMATED
COMPLETION
(FISCAL YEAR)(b)
MILLION TONNES
ESTIMATED
IN-SERVICE
(FISCAL YEAR)(c)
ESTIMATED ADDITIONAL
ANNUAL OPERATIONAL
CAPACITY(d)
18
15
COMPLETE
Colonsay
Esterhazy
K1(a)
K2
2011-2012
0.2
2012
2013
0.1
0.7
2013
2013
2015-2016
2014-2015
0.6
0.5
2017
2017-2018
0.9
(a)
12
9
IN PROGRESS
Belle Plaine
Colonsay
Esterhazy
K3
3
0
FUTURE(e)
Belle Plaine
Colonsay
6
1.5
0.5
5.0
(a) During 2012, 0.2 million tonnes were placed in service and included in operational capacity
(b) Estimated completion years indicate when capital will be substantially invested
(c) Estimated in-service years indicate when capacity is expected to begin to be added; does not necessarily reflect full operating capacity.
(d) Estimates based on project engineers but will be impacted by factors which include quality
of reserves and nature of geological formations we are mining at a particular time. Ore grade
assumptions are based on historical studies, modified for most recent historical grades.
(e) Not yet approved by our Board of Directors.
-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
SOURCE: IFA MAY 2012
SOURCE: MOSAIC
60%
FY2009
FY2010
FY2011
Operating Earnings
FY2012
China
5.2
Rest of World
8.7
Brazil
4.4
Malaysia
1.2
Indonesia
1.4
Forecasted 2011/2012 Fertilizer Year
Gross Margin %
WORLD POTASH SHIPMENTS
MOSAIC POTASH OPERATING RATE
MILLION TONNES FINISHED PRODUCT
United States
4.4
India
2.5
0%
FY2013
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
2012
FISCAL YEAR
Operating Rate %
0%
0
95
96
97
98
08
2011 POTASH INDUSTRY CAPACITY
K2O UPTAKE BY CROP
MILLION TONNES MOP
POUNDS PER ACRE
SOURCE: COMPANY REPORTS,
FERTECON AND MOSAIC
10
11E
12F
13F
CALENDAR YEAR
SOURCE: IPNI AND MOSAIC
500
Uralkali
PotashCorp
(a)
400
Belaruskali
Mosaic
09
Source: Fertecon and Mosaic
(a)
300
ICL
K+S
200
APC
Agrium
100
Qinghai Salt Lake
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 of peaking
capacity will revert to Mosaic at the beginning of calendar 2013.
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 or increased financial assurance requirements; resolution of global tax audit activity; 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)
www.mosaicco.com
© 2012 The Mosaic Company