The Mosaic Company (NYSE: MOS) announced it will idle its Araxá Mining and Chemical Complex and related mining activities at the Patrocínio Complex in Brazil as part of cost reduction efforts. The company also plans to pursue the sale of Araxá assets while continuing development of niobium opportunities at Patrocínio.

The idling process will result in workforce reductions at both sites and reduce annual phosphate production at Mosaic Fertilizantes by approximately 1 million tonnes. Following completion of a potential transaction, the company expects annual capital expenditure to decline by $20 to $30 million and operating expenses to decrease by $70 to $80 million.

Mosaic anticipates recording a pre-tax book impact of $350 to $400 million in the first quarter of 2026. This includes $275 to $300 million for asset impairment and write-offs, with the remainder covering severance, contract termination costs, and other idling expenses.

The company stated the impact on adjusted EBITDA is expected to be limited amid elevated sulfur prices, excluding one-time closure costs. All activities during the idling period will comply with applicable safety, environmental, and tailings dam regulations.

"We believe idling the facilities and pursing a potential sale is the right path forward," said Bruce Bodine, President and Chief Executive Officer. "This decision reflects Mosaic's continued focus on discipline around capital allocation and returns."

The Tampa, Florida-based company is completing technical assessment work related to niobium at Patrocínio, including sampling and analysis. Mosaic produces and markets potash and phosphate fertilizer and serves customers in more than 40 countries.