Cost of mineral extraction continues to increase - US Mosaic

19 July 2011 22:36  [Source: ICIS news]

HOUSTON (ICIS)--The development of new phosphate and potash mines around the world will only get more expensive because of civil and social unrest, as well as more stringent permitting processes, US fertilizer company Mosaic said on Tuesday.

“It’s getting more expensive for the mineral extraction business around the world,” said Mosaic CEO Jim Prokopanko during the company's fourth-quarter earnings conference call. “We get regular calls to look at rocks all over the world. These are not cheap places to develop.”

For example, the major issue with sites in countries such as Libya and Syria is the prevalence of civil and social unrest.

Increased regulation and tighter permitting processes also contribute to the rising cost of mineral extraction.

Mosaic has 30 to 35 years of proven reserves in its mines in Florida, where permitting has become a challenge.

“We have every expectation that we will get the permits to allow us to continue operations for the next 30 to 35 years,” said Richard Mack, the general counsel for Mosaic. “We have a great working relationship with regulators on the local, county, state and Army Corps level.”

Mack said the company plans to work with regulators in the future to maintain their relationships.

For more on Mosaic visit ICIS company intelligence

By: Bobbie Clark
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