MOS · 10-Q · 2026Q2 · Full report

Brazil Asset Divestiture and Idling

MOSAIC CO · 2026-08-05 · Importance 46 · Surprise 42 · In source text

Mosaic idled the Araxá and Fospar facilities in Brazil during the first quarter of 2026 and idled the Patrocínio mining activities as part of its divestiture plan. Six-month restructuring-related charges included approximately $72 million of contract terminations, $56 million of property, plant and equipment impairment, $21 million of inventory and other write-offs, and $10 million of severance and employee costs. The company also incurred approximately $37 million of idle costs and $52 million of accelerated depreciation associated with Patrocínio mining idling. Brazilian phosphate production fell to 1.4 million tonnes from 2.0 million tonnes, and the six-month phosphate operating rate declined to 56% from 81%.

Key facts

• Committed in March 2026 to a plan to divest the Araxá mining and chemical complex and idle related mining activities at the Patrocínio complex in Brazil, resulting in an initial charge of approximately $442 million in Q1 2026 and subsequent costs of approximately $40 million in the current quarter. source
• For the six months ended June 30, 2026, the decision to idle and divest Araxá and idle Patrocínio resulted in additional expense of approximately $482 million recognized in the period. source
• Mosaic Fertilizantes production of crop nutrient dry concentrates and animal feed ingredients decreased 52% for the three months ended June 30, 2026, primarily due to idling Araxá and Fospar facilities in Q1 2026 and lower Uberaba production due to limited sulfur availability. source
• Brazil phosphate rock production for the three months ended June 30, 2026: 0.7 million tonnes, compared to 1.0 million tonnes in the prior-year period; decrease due to idling Patrocínio mine in Q1 2026 and curtailing Tapira and Catalão in current period. source
• Mosaic Fertilizantes six-month production of crop nutrient dry concentrates and animal feed ingredients decreased 39% compared to the prior year period; Brazilian phosphate rock production decreased to 1.4 million tonnes for the six months ended June 30, 2026 from 2.0 million tonnes in the prior year period due to idling Patrocínio and curtailing Tapira and Catalão. source

Impact estimates