US Mosaic unsure when New Mexico facility will resume production

15 May 2014 18:14 Source:ICIS News

HOUSTON (ICIS)--Mosaic has not determined the cause of the warehouse collapse that occurred 5 May at its New Mexico facility, and no confirmed date for resumption of production at the site has been determined, the US-based fertilizer producer said on Thursday.

Mosaic said that it had no new information on the structural failure of the steel building at its Carlsbad site, which was utilised for mixing and preparing potash for shipment.

The investigation is being conducted by the producer and the New Mexico Mine Safety and Health Administration, but there is no estimate as to when the review will be completed.

Mosaic officials said that they are now reviewing a variety of scenarios in order to get product to the market. The producer has applied for a temporary air permit from the state of New Mexico that would allow the company to ship additional potash deliveries by truck.

The air permit would be required, as the increased vehicle traffic would result in additional emissions that Mosaic is not presently authorised to emit. New Mexico officials said that they have met with the company and that the application is under review.

Mosaic typically ships between 90-95% of its finished volumes from the Carlsbad facility by rail, with the balance relying on truck transportation.

There are three warehouses at the site that are used by Mosaic, which employs an estimated 600 people at the facility. The building that collapsed is known as Warehouse No 1 and was constructed in 1939.

There were no injuries from the accident. The cost of damages to the producer has not been disclosed.

By Mark Milam