Mosaic Company has completed the sale of Mosaic Potássio Mineração, the operator of the Taquari-Vassouras potash mine in Brazil, to VL Mineração.
VL Mineração will assume all potash mining and processing operations, along with maintenance and other associated obligations.
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The mine is located in Rosário do Catete, Sergipe, Brazil.
Mosaic president and CEO Bruce Bodine said: “We are pleased to announce the completion of the sale of the Taquari-Vassouras mining complex. This transaction advances our strategy of elevating our core business and redeploying capital to opportunities where we have a competitive advantage.
“We are grateful to the employees who have committed themselves to safely operating and maintaining this facility over the years.”
As per the terms of the deal, which was announced in August, Mosaic is to receive $27m in cash payments.
Out of that amount, Mosaic will receive $12m at the time of deal closure, $10m one year after the closure of the deal and up to $5m over six years as contingent payments.
VL Mineração will also take responsibility for around $22m in asset retirement obligations.
The Mosaic Company produces and markets concentrated phosphate and potash crop nutrients.
VL Holding CEO Daniel Moreira said: “We are pleased with the completion of this deal. We are confident that the mine has exceptional production potential, which will be enhanced by our expertise and strategic investments.
“This will allow us to grow sustainably and strengthen our position as a producer and distributor of potassium chloride in Brazil.”
VL Mineração , a subsidiary of VL Holding, is a Brazilian agribusiness company with 20 years of experience in agriculture and animal genetics.
Last year, in July, Mosaic Minerals signed a letter of intent with Iamgold to gain full ownership of the Amanda property in Jamésie, Quebec, Canada.
