Mosaic's $2 Billion Settlement Won't Impact Production, Officials Say

Mosaic Fertilizer’s near $2 billion settlement with the U.S. Environmental Protection Agency isn’t expected to have any impact on the company’s continued operation, officials said Thursday.

“The company does not expect the settlements or resulting operational changes to adversely impact production rates or volumes,” Mosaic officials noted in a media release issued about the settlement.

Mosaic, which has operations in Riverview, Lithia and Bartow, has been negotiating with the EPA for about several years about its handling of hazardous waste disposal. The settlement, the EPA said in a media release, “resolves a series of alleged violations by Mosaic, one of the world’s largest fertilizer manufacturers. The 60 billion pounds of hazardous waste addressed in this case is the largest amount ever covered by a federal or state settlement and will ensure that wastewater at Mosaic’s facilities is properly managed and does not pose a threat to groundwater resources.”

Mosaic operates eight facilities in Florida and two in Louisiana. The EPA accused Mosaic employees of mixing corrosive materials from fertilizer operations with wastewater and solid waste produced during mineral processing. That act, federal authorities said, was a violation of both state and federal hazardous waste regulations.

“This case is a major victory for clean water, public health and communities across Florida and Louisiana,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Mining and mineral processing facilities generate more toxic and hazardous waste than any other industrial sector. Reducing environmental impacts from large fertilizer manufacturers operations is a national priority for EPA, as part of our commitment to pursuing cases that have the biggest impact on protecting public health.”

Under the settlement, Mosaic is responsible for creating a $630 million trust fund which it will invested in until it reaches a full-funding mark of $1.8 billion. The money will be used to cover future closure of and treatment of hazardous wastewater at four specific facilities, including the one in Riverview. In addition, the money will pay for the “long-term care of those facilities and three additional facilities that are already undergoing closure,” the EPA’s media release stated.

Mosaic has also been ordered to pay a $5 million civil penalty to the United States, $1.45 million to the state of Florida and $1.55 million to the state of Louisiana. Other conditions include spending about $170 million on projects meant to reduce environmental impacts of manufacturing and waste management programs at the company’s facilities and $2.2 million on two other environmental projects.

Joc O’Rourke, Mosaic’s president and chief executive officer, said his company is happy to see the issue come to a close.

“Mosaic is committed to meaningful environmental stewardship at all of our facilities, and we take our responsibility to be good corporate citizens--now and for the decades ahead--very seriously,” he said. “The commitments we are making through these settlements further those stewardship efforts.”

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