Potash Corp. of Saskatchewan settled its litigation with Mosaic Potash Esterhazy LP. Under the settlement, Mosaic will deliver the balance of the potash tons owed to PotashCorp for the 2011 and 2012 calendar years. On December 31, 2012, the Canpotex Esterhazy productive capacity shall be reallocated from PotashCorp to Mosaic. As part of the settlement, Mosaic’s counterclaim for damages arising from PotashCorp’s declaration of Force Majeure in April 2009 will be dismissed.
“This settlement provides PotashCorp and its stakeholders with certainty through 2012 and dovetails with our ongoing potash expansion program, which will increase operational capability to 17.1 million [metric] tons by 2015,” said Bill Doyle, president and CEO, PotashCorp.