The Mosaic Company has completed the sale of its idled phosphate mining unit in Patos de Minas, Brazil to Fosfatados Centro SPE Ltda., in a move to streamline operations and redeploy capital to higher-return sectors.

The final transaction totals $111 million USD, with $51 million paid at closing and the remaining $60 million to be paid in installments over the next four years, according to a company release. Mosaic expects to record a book gain of $80-90 million related to the sale during the fourth quarter of 2025.

"This sale allows us to redeploy capital to higher-returning areas to make Mosaic more agile and competitive," said Karen Swager, Executive Vice President of Operations at Mosaic.

The Patos de Minas site had been idle, and the transaction transfers full responsibility for the mine and its tailings dams to Fosfatados Centro. The buyer intends to restart operations, aiming to support phosphate supply in Brazil's central Cerrado region.

Local Production for Regional Demand

Fosfatados Centro's leadership sees the acquisition as part of a broader national strategy to boost local fertilizer production.

"This agreement supports the supply of customized phosphate fertilizers to the Cerrado, as we already do in MATOPIBA, and is a significant step under Brazil's National Fertilizer Plan," said Rodolfo Galvani Júnior, owner of Fosfatados Centro.

The Cerrado biome, spanning parts of Brazil's Central-West, is a key frontier for agricultural expansion and one of the country's largest consumers of phosphate-based inputs. The restart of local production is expected to reduce logistical costs and reliance on imports.

The sale fits into Mosaic's broader capital reallocation strategy, focusing on core assets and higher-margin projects amid volatile global fertilizer markets and increasing demand for regionalized supply chains.

While Mosaic remains a key global supplier of phosphate and potash, this divestiture reflects a trend among major players to optimize portfolios and respond to both cost pressures and regional policy shifts encouraging localized input production.

Mosaic has not announced any additional asset sales but has signaled that it will continue to evaluate opportunities that enhance loterm competitiveness and shareholder value.