The Mosaic Co. said March 30 that the expected impact from the recent changes in Saskatchewan’s Potash Production Tax (CRT) calculation will increase the company’s 2015 CRT pre-tax payments by $80-$100 million. This increase in the company’s 2015 CRT obligation is additive to Mosaic’s guidance for 2015 CRT and Canada Royalties of $215 to $275 million provided as of Feb. 11, 2015.
Mosaic said it is continuing to assess potential ways to mitigate the increase, and expects to update all guidance, including CRT and Canadian Royalties, on April 30, in the first quarter 2015 earnings release.
Potash Corp. of Saskatchewan Inc. complained about the tax changes soon after they were announced (GM March 23, p. 1) and said they would decrease its 2015 pre-tax earnings by C$75-100 million.
Agrium Inc., which is a smaller producer, at the tail-end of a major expansion, expects no significant impact on near term earnings.