October 5, 2007

Higher soy demand prompts Mosaic to build fertiliser plant in Argentina

The Argentine unit of Mosaic Co. (MOS) plans to invest more than US$20 million to expand its fertilizer plant at the San Martin port in Santa Fe Province due to rising soy demand in the region, a company spokesman said Thursday.

The phosphate plant expansion is in response to a 33 percent rise in demand for the fertilizer in Argentina and neighbouring countries over the past 4 years, according to the company.

The plant is expected to put out 480,000 tonnes a year, once the expansion is complete.

In addition to the new plant, the company plans to invest US$5 million for two sulfuric acid tanks and is planning to expand storage and shipping capacity at the San Martin port complex.

Mosaic, majority controlled by US-based Cargill Inc. (CRG), is the world's largest producer of processed phosphate, with significant operations in China and Brazil, according to the company. It is also the world's largest miner, processor and distributor of potash.