Mosaic to Invest Up to $1B in Saudi Arabian Fertilizer Venture
The Mosaic Company said Tuesday that it has agreed to invest up to $1 billion in cash in a joint venture that will produce phosphate fertilizers, animal feed, and other products in Saudi Arabia.
Plymouth-based Mosaic is partnering with Ma’aden (also referred to as Saudi Arabian Mining Company) and the Saudi Basic Industries Corporation (SABIC) on the $7 billion project. Mosaic will have a 25 percent ownership stake, Ma’aden will own 60 percent of the venture, and SABIC will have a 15 percent interest.
Mosaic said that its cash investment will be provided over a four-year period beginning this year.
The project will be based in Wa’ad Al Shammal Minerals Industrial City in northern Saudi Arabia and involve expanding existing processing plants in Ras Al Khair Minerals Industrial City on the nation’s east coast.
Operations are expected to begin in late 2016, at which point the project is expected to annually produce 3.5 million metric tons of phosphate fertilizer, animal feed, food-grade purified phosphoric acid, and sodium tripolyphosphate to sell to customers worldwide. (A metric ton equates to 2,204.6 pounds.)
“Our joint venture with Ma'aden holds great promise for Mosaic, and we expect it to be an excellent complement to our phosphate business in Florida and Louisiana,” Mosaic President and CEO Jim Prokopanko said in a statement. “This cost-effective phosphate project would enable Mosaic to further diversify our sources of phosphates and gives us improved access to key agricultural countries.”
Mosaic—a company that produces and markets phosphate, potash fertilizers, and feed ingredients—is among Minnesota’s 10-largest public companies based on revenue, which totaled $11.1 billion in its most recently completed fiscal year.