Mosaic sells SOPM business for $30 million

Mosaic sells SOPM business for $30 million

The Mosaic Company has sold its Mosaic Potash Carlsbad business in New Mexico to newly-formed company International Minerals Carlsbad for $30 million.

A definitive agreement was signed on the 22nd December with the transaction expected to close in the first half of 2026. It provides International Minerals Carlsbad with ownership of Mosaic’s potash and water business in New Mexico and the associated potassium magnesium sulphate (SOPM) brands K-Mag (fertilizer grade) and Dynamate (feed grade).

International Minerals Carlsbad is a new business entity, reportedly with leadership and staff who worked previously for Mosaic and Intrepid Potash. While Mosaic does not disclose SOPM production and sales volumes, the company sold 865,000 tonnes of ‘performance’ potash products in 2024, with this volume including sales of its K-Mag and Aspire (boron enriched potash) products alongside animal feed ingredients.

The agreement will see International Minerals Carlsbad take ownership of the operations, assets and liabilities Mosaic’s Carlsbad mine in New Mexico. It will also take on responsibility for the asset retirement obligations associated with this mine.

In return, Mosaic will receive an initial cash payment of $20 million (subject to adjustment on closing) followed by a deferred cash payment of $10 million. The latter will be payable to Mosaic in three equal annual instalments beginning in 2029.

“This transaction is a win for all parties,” said Karen Swager, Mosaic’s Executive Vice President, Operations. “We are pleased that International Minerals Carlsbad will provide continuity for our Carlsbad employees at the site, and that Mosaic has taken another step to focus on core assets. Our potash production is now entirely focused on our operations in Saskatchewan, Canada which are expected to continue to generate strong returns.”

“The acquisition is an exciting business opportunity, and we look forward to building upon the 100+ year legacy of the potash industry in New Mexico,” said Sergio Saenz, the CEO of International Minerals Carlsbad. Kelvin Feist, the company’s Chief Commercial Officer, added: “Our priority is to ensure a seamless transition of the business for employees, customers, suppliers and all stakeholders.”

Separately, Mosaic reported on 16th December that it was idling single super phosphate (SSP) production at its Fospar and Araxá sites in Brazil – as well as suspending future sulphur purchases for the time being – due to recent sharp sulphur price increases. The company said it may review these decisions in 30 days.