MOS · 10-Q · 2026Q3 · Full report

Brazil Asset Divestiture and Idling

MOSAIC CO · 2026-11-04 · Importance 64 · Surprise 42 · No source text

In the first quarter of 2026, Mosaic committed to divest its Araxá mining and chemical complex and idle related mining activity at the Patrocínio complex in Brazil, resulting in approximately $496 million of additional expense during the first nine months. The company recorded a $232.6 million impairment loss for the Araxá disposal group and approximately $159 million of other charges associated with the Araxá and Patrocínio decisions, including $72 million for contract terminations and $10 million for severance and other employee costs. The decisions also generated approximately $51 million of idle costs, while accelerated depreciation from idling Patrocínio mining operations reduced Mosaic Fertilizantes gross margin by approximately $50 million. Mosaic completed the sale of its Carlsbad, New Mexico potash mine on April 30, 2026, for a $20 million purchase price subject to adjustment and a deferred $10 million payment; it recorded an additional $6.2 million impairment loss.

Key facts

• Mosaic's 2026 decision to idle and divest the Araxá mining and chemical complex and idle related mining activities at Patrocínio in Brazil resulted in approximately $496 million of additional expense during the first nine months of 2026. source
• Mosaic recorded $238.8 million of losses on assets to be sold in the first nine months of 2026, including a $232.6 million impairment on the Araxá disposal group and a $6.2 million impairment related to the Carlsbad sale. source
• Mosaic recorded approximately $159 million of charges for the Araxá divestiture and Patrocínio idling: $72 million for contract terminations, $56 million for property and equipment impairment, $21 million for inventory and other costs, and $10 million for severance and employee costs. source
• Mosaic incurred approximately $51 million of idle costs related to the Araxá and Patrocínio sites in the first nine months of 2026. source

Impact estimates