THE CANADIAN PRESS
SAO PAOLO, Brazil - Brazilian mining giant Vale is considering taking a run at buying major American fertilizer company Mosaic Co. (NYSE:MOS), a company with major operations in Saskatchewan including a potash mine at Belle Plaine, according to a report in a Brazilian newspaper.
Buying Minnesota-based Mosaic could cost Vale, owner of the former Inco nickel mining operation in Canada, about US$25 billion, according to the O Estado de S. Paulo newspaper.
Stock in Mosaic (NYSE:MOS), controlled by privately held U.S. agricultural giants Cargill Inc. and IMC Global, rose $5.07 or more than 11 per cent to US$49.62 in afternoon trading in New York.
Earlier this year, Vale acquired the Regina potash project in Saskatchewan as part of an US$850-million potash deal with Rio Tinto. It also has potash interests in Argentina alongside its major operation, Taquari-Vassouras, in Brazil.
The rumour appeared to fuel interest in major agricultural stocks on the TSX.
Shares in Canadian potash producers all rose sharply in afternoon trading on the Toronto Stock Exchange. The biggest, Potash Corp. (TSX:POT), was ahead $3.87 or four per cent at $101.85.
Potash One Inc. (TSX:KCL) stock was up 29 cents or 12 per cent at $2.78, while Western Potash Corp. (TSXV:WPX) gained three cents to 48.5 cents. Major agricultural conglomerate Agrium (TSX:AGU), which also operates a potash mine, was up $2.24 or five per cent to $45.08.
Meanwhile, shares in Athabasca Potash Inc. (TSX:API), which announced Thursday it may consider selling itself after a successful drive to find partners for the Burr potash mine in Saskatchewan, soared $1.45 or 36 per cent to $5.53.
Mosaic has a major presence in North America and offshore. In Canada, the company has three Canadian potash operations, containing four mines, all located in southern Saskatchewan. Those include a mine at Belle Plaine, two interconnected shaft mines at Esterhazy and another shaft mine at Colonsay.
