The Mosaic Company Announces Canpotex Sinochem Agreement
05 November 2004 - 3:27PM
PR Newswire (US)
The Mosaic Company Announces Canpotex Sinochem Agreement
MINNETONKA, Minn., Nov. 5 /PRNewswire-FirstCall/ -- The Mosaic
Company (NYSE:MOS) announced today that Canpotex Limited
(Canpotex), the offshore sales association for Saskatchewan potash
producers, has entered into an agreement to sell 2.1 million tonnes
of potash to Sinochem Corporation (Sinochem) for 2005. The
agreement includes 1.5 million metric tonnes of red standard grade
potash, 0.3 million metric tonnes of granular grade potash, and 0.3
million metric tonnes of white standard grade potash covering the
2005 calendar year. The agreement provides for FOB Vancouver price
increases of US$40.00 and US$43.00 per metric tonne, respectively,
for red standard potash and white standard potash over 2004
contract prices. The granular grade potash will be priced at a $10
per tonne premium over the red standard potash. The 2005 agreement
covers the second year of the three-year "Memorandum of
Understanding" between Canpotex and Sinochem signed by the parties
in August, 2003. "This new agreement will create an excellent base
for the 2005 year and gives us confidence that the potash market is
likely to continue to be strong during this period," said Fritz
Corrigan, CEO and President of The Mosaic Company. Canpotex member
companies are: Agrium Inc. (Agrium) (NYSE: AGU; TSX), The Mosaic
Company (Mosaic) (NYSE:MOS) and Potash Corporation of Saskatchewan
Inc. (PotashCorp) (NYSE: POT; TSX). Agrium supplies Canpotex with
9.13% of its potash product, Mosaic 36.67% and PotashCorp 54.20%.
Canpotex Limited of Saskatoon, Saskatchewan was established in 1970
and is the exclusive offshore marketing company for its members,
the Saskatchewan potash producers. About The Mosaic Company The
Mosaic Company is one of the world's leading producers and
marketers of concentrated phosphate and potash crop nutrients. For
the global agriculture industry, Mosaic is a single source for
phosphates, potash, nitrogen fertilizers and feed ingredients.
Mosaic was formed through the 2004 combination of IMC Global Inc.,
and Cargill Crop Nutrition, a business unit of Cargill,
Incorporated. Based in Minnetonka, Minnesota, Mosaic serves
customers in 50 countries through phosphate production facilities
in Florida, Louisiana and the growth markets of Brazil and China;
potash production facilities in New Mexico, Michigan and
Saskatchewan, Canada; a joint venture interest in the Saskferco
Products Inc., nitrogen production facility, and; distribution and
customer service operations in 15 countries. Mosaic's consolidated
annual revenues are expected to exceed $4.5 billion and its common
stock trades on the New York Stock Exchange under the symbol MOS.
More information on the company is available at
http://www.mosaicco.com/ . This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, statements about future financial and
operating results, the predictability of fertilizer markets subject
to competitive market pressures, changes in foreign currency and
exchange rates, international trade risks including, but not
limited to, changes in policy by foreign governments. Such
statements are based upon the current beliefs and expectations of
The Mosaic Company's management and are subject to significant
risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements. DATASOURCE: The Mosaic
Company CONTACT: Media, Linda Thrasher, +1-952-984-0350, or
Investors, Douglas Hoadley, +1-952-984-0234, both of The Mosaic
Company Web site: http://www.mosaicco.com/
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