Mosaic to halt muriate of potash production in New Mexico

|About: The Mosaic Company (MOS)|By:, SA News Editor

Mosaic (MOS -0.2%) discloses it will permanently halt production of muriate of potash produced at its Carlsbad, N.M., facility, citing ore quality and the age of its facilities which hurt its ability to compete in challenging market conditions.

MOS says it plans to restructure its Carlsbad operations to exclusively produce another fertilizer, K-Mag, which is already the facility's main output, accounting for 70% of production.

MOS expects the move to result in $135M-$160M in related pre-tax charges, with $55M-$75M reflected in Q3 and the rest in Q4.