WASHINGTON (dpa-AFX) - Fertilizer giant Mosaic Co. (MOS) Thursday said it has reached a settlement with Potash Corporation of Saskatchewan Inc. regarding the parties' dispute over the obligations of Mosaic's wholly-owned subsidiary, Mosaic Potash Esterhazy Limited Partnership, to supply potash from its Esterhazy mine to PCS pursuant to a tolling agreement which began in 1978.
The parties were scheduled to begin trial before the Queen's Bench Judicial Centre of Saskatoon, Saskatchewan in January 2012. The settlement will resolve the tolling agreement dispute in its entirety, cancel the scheduled trial and dismiss the claim of PCS and the counterclaim of Mosaic.
Under the terms of the settlement, Mosaic's obligation to supply up to approximately 1.1 million metric tonnes of potash per year under the tolling agreement will expire December 31, 2012, at which time the tolling agreement will terminate. Also in connection with the settlement, effective December 31, 2012 Mosaic will receive credit for 1.3 million metric tonnes of capacity at Esterhazy for purposes of calculating its relative share of annual sales of potash to international customers by Canpotex Limited, capacity which is currently allocated to PCS.
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