Mosaic expects Esterhazy trial by end of year

Plymouth, Minn.-The Mosaic Co. President and CEO James Prokopanko told analysts at the recent UBS Global Agricultural and Chemicals and Seed/Biotech Conference that Mosaic expects its tolling agreement dispute with PotashCorp over tonnage from the Esterhazy, Sask., potash mine (GM Aug. 17, 2009, July 27, 2009) to be heard by a court by the end of the year. Prokopanko said that it boils down to PotashCorp saying they have two more years left in their claims on tonnage from the mine, which would be approximately 2.5 million mt. Mosaic argues the contract ends Aug. 30, 2010, while PotashCorp says it runs into 2012. And despite lower potash prices, Prokopanko told analysts there’s a heck of a fine margin in potash. “We’re seeing gross margins in that 45 percent kind of range for a basic material. I don’t know that there are many other minerals or processed chemicals/commodity chemicals where you’re getting a 45 percent gross margin. So there’s a good dollar in it, both for us and our competitors.”