The Mosaic Co., Plymouth, Minn., will commence mining operations in March at its Ona phosphate mine project in Hardee County, Fla., a company representative confirmed, after Mosaic announced that it was awarded its final permit required by the U.S. Army Corps of Engineers (USACE) on Jan. 3.
The arrival of the USACE Clean Water Act Section 404 DA permit, originally expected to be issued in the third- or fourth-quarter of 2018, capped an application process begun by Mosaic in 2011. The State of Florida issued mining permits for Ona in 2015, while local government permitting was completed in July 2018. A U.S. Fish and Wildlife Services Threatened and Endangered Species Authorization was granted in conjunction with the USACE 404 permit.
The Ona project consists of 22,483 acres, of which 16,778 have been designated for mining. Phosphate rock reserves at the site are estimated in excess of 160 million mt.
Mining is set to begin in March at the site’s western edge, and will support Mosaic’s Four Corners Mine, located in Hillsborough County, extending that mine’s lifespan by an estimated 14 years.
Ona’s eastern portion will eventually contribute to the company’s South Pasture Mine, idled since August 2018 due to a lack of need. Mosaic halted operations at its 2 million mt/y Plant City, Fla., phosphate production facility in October 2017, due to both low demand and flagging prices in the U.S. and international phosphate markets, temporarily rendering South Pasture unneeded.
Mosaic has previously signaled a willingness to reopen the Plant City facility, and likely South Pasture as well, should market conditions allow. Planned production increases from international producers such as Saudi Arabia’s Ma’aden could muddle that timeline, however, industry sources have speculated.
Included in the Ona expansion is a plan to double nameplate production at South Pasture’s beneficiation plant, as well as the construction of a 15-mile pipeline facilitating the movement of clay from Ona to Four Corners.
A request by Mosaic to pipe up to 28 million tons of clay from the Ona project to the Four Corners Mine was approved by Hillsborough County commissioners in November 2018. Initially approved for a five-year period, Mosaic will be able to apply for an extension through 2029. The ruling reversed a 2002 provision barring clay dumping in Hillsborough from sources located outside of the county.
Approximately 162 jobs at South Pasture and 550 at Four Corners are expected to be sustained by the Ona project, according to Mosaic’s website, along with an additional 100 contractors staffed at Four Corners. The state of Florida will collect an estimated $270 million in severance taxes over the life of the project, with an additional $60 million to be paid to Hardee County.
In other news, a Mosaic representative confirmed on Jan. 10 a delay in the company’s planned relocation of Mosaic’s corporate headquarters to Tampa, Fla., from Plymouth, Minn. Originally slated to conclude by the end of March, Mosaic now expects the move to be completed sometime in the second quarter. Mosaic announced the plan in May 2018.