Mosaic Signs Ammonia Offtake Agreement for Faustina Petroleum Coke Project
The Mosaic Company announced today that Mosaic Fertilizer, LLC, a wholly-owned subsidiary of The Mosaic Company, has signed a 15-year ammonia offtake agreement with Faustina Hydrogen Products LLC, an affiliate of US Syngas LLC (USS). The term of the ammonia offtake commences upon startup of a petroleum coke (Nachrichten/Aktienkurs) gasification project to be constructed adjacent to Mosaic’s Faustina phosphate manufacturing plant in St. James Parish, Louisiana. USS is acting as lead sponsor of the project. The agreement provides that Mosaic will purchase a majority of the approximately 1.3 million tons of anhydrous ammonia that would be annually produced at the petroleum coke complex. The agreement is subject to various conditions, including among others, USS’ ability to obtain adequate financing to construct the petroleum coke complex and the successful completion and startup of the project. Assuming financing is obtained prior to the end of this calendar year, the project is anticipated to begin operations in 2009.
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In April 2006, Mosaic announced a non-binding letter of intent with USS to pursue the development of the petroleum coke project. USS is currently pursuing appropriate financing and regulatory approvals.
About The Mosaic Company
The Mosaic Company is one of the world’s leading producers and marketers of concentrated phosphate and potash crop nutrients. For the global agriculture industry, Mosaic is a single source of phosphates, potash, nitrogen fertilizers and feed ingredients. More information on the company is available at http://www.mosaicco.com/ .
About US Syngas LLC
US Syngas LLC, together with its “teaming” partners and equity sponsors, is a specialist in developing projects involving the gasification of petroleum by-products to produce feedstock for the petrochemical industry. HA Capital Advisors, an affiliate of Hannon Armstrong, Annapolis, Maryland ( http://www.hannonarmstrong.com/ ), is financial advisor to US Syngas.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements relating to obtaining financing and regulatory approvals for, and completion and successful operation of, the petroleum coke project as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Photo: http://www.newscom.com/cgi-bin/prnh/20060331/MOSAICLOGO
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