Plymouth, Minn.-The Mosaic Co. announced July 7 the completion of its previously announced investment (GM April 5, 2010) in a joint venture with subsidiaries of Vale S.A. and Mitsui & Co. Ltd. that own a phosphate rock mine in the Bayóvar region in Peru. Terms of the investment include a 35 percent economic interest in the joint venture, along with a commercial offtake supply agreement for up to 35 percent of the mine’s phosphate rock production. Mosaic paid Vale $385 million for the stake in the joint venture. “We are pleased to close this transaction that advances our strategic objective to secure our phosphate rock supply,” said Jim Prokopanko, Mosaic president and CEO. Vale confirmed the completion, noting that the newly-formed company, MVM Resources International B.V., now controls and operates the project. Vale said it sold 35 percent of the total capital of MVM to Mosaic for US$385 million and 25 percent to Mitsui for $275 million. Vale retains control of the Bayóvar project, holding a 51 percent stake of the voting shares and a 40 percent stake of the total capital of the newly-formed company. Bayóvar is a phosphate rock project located in Sechura, department of Piura, Peru, which consists of an open-pit mine with an expected production capacity of 3.9 million mt/y, and a maritime terminal. Start-up is expected to take place in the next few weeks. Vale said the alliance with Mosaic and Mitsui creates significant shareholder value by providing Bayóvar with access to technical expertise, guaranteed product off-take, and enhanced product distribution capabilities. Vale said it is in line with the company’s strategy to become a leading global player in the fertilizer business, with the development of a large world-class value creation platform through a combination of acquisitions, joint-ventures, and organic growth.
Transparency Across the Fertilizer Value-Chain