Mosaic Co. said it will idle its Faustina and Uncle Sam phosphate production facilities in Louisiana by Oct. 1 to cut 2019 output by about 500,000 tonnes as phosphate prices declined further through the summer.
The move is expected to tighten supply, rebalance the market and reduce inventories of high phosphate fertilizer, the company said Sept. 9.
Mosaic also plans to initiate US$250 million in stock repurchases under its existing authorization, which has US$850 million of remaining capacity.
The company said its Brazil-based Mosaic Fertilizantes do Brasil Ltda. unit expects to meet or exceed its target of US$275 million in synergies for 2019 and is targeting a further US$200 million in annual value by the end of 2022 through "ongoing business transformation efforts."
President and CEO Joc O'Rourke said the steps are expected to "further enhance Mosaic's ability to benefit from expected strong business conditions in 2020."
Mosaic Fertilizantes recently resumed mining at full capacity at the Araxa and Tapira phosphate mines in Brazil. They were suspended after the company failed to secure a deadline extension to submit stability statements for three dams, part of new safety regulations imposed by the government. It flagged US$100 million in operating costs due to the move.
