Mosaic to idle Brazil phosphate plants in cost-cutting push

Mosaic said on Wednesday it will idle two phosphate facilities in Brazil, cut jobs and reduce annual output by about 1 million tonnes, as the fertilizer producer moves to curb costs, redeploy capital and pursue the sale of assets.

The US-based company will begin idling and demobilizing its Araxa mining and chemical complex and related mining activities at its Patrocinio complex, leading to workforce reductions at both sites.

Mosaic did not disclose how many employees would be affected.

Brazil is a key production hub for Mosaic, which has been trimming its portfolio and capital spending after periods of oversupply weighed on fertilizer markets and returns.

Mosaic sold its Taquari-Vassouras potash mine and the idled Patos de Minas phosphate mining unit in Brazil in 2025.

The company plans to pursue the sale of its Araxa assets, while continuing development work on a separate niobium metals project at Patrocinio.

“We believe idling the facilities and pursuing a potential sale is the right path forward,” Mosaic CEO Bruce Bodine said on Wednesday. “This decision reflects Mosaic’s continued focus on discipline around capital allocation and returns.”

The impact on adjusted core profit is expected to be limited due to elevated sulphur prices, excluding one-off costs, the company said.

Following completion of a potential deal, Mosaic expects annual capital expenditure to decline by about $20 million to $30 million, with operating expenses forecast to fall by roughly $70 million to $80 million.

The company expects to record a pre‑tax charge of between $350 million and $400 million in the first quarter of 2026.

(By Dharna Bafna; Editing by Devika Syamnath)