With our five mines and mineral reserves to run our large-scale Canadian operations for the next 100 years, Mosaic is well-positioned to meet the increasing demands from the agricultural market.

Despite facing disruption from macro-level economic forces, Mosaic's potash expansion program accelerated through fiscal 2010 and will extend through 2020. Our brownfield expansion strategy is necessary to position Mosaic to meet the future crop nutrient demand that we anticipate.

As the financial markets started to open up in the second half of the fiscal year, we saw a rebound in demand levels, North American potash shipments picked up, exports increased, inventory levels dropped and Mosaic ramped up production. We anticipate worldwide potash demand to continue to grow at approximately 3 to 3.5 percent as agricultural giants such as China, India and Brazil depend on imports for this nutrient. In addition, potash has historically been under-applied in relation to phosphate and nitrogen, adding to the potential for increased demand.

Mosaic is one of the world's top producers of potash, with the world capacity for potash and related products totaling more than 74 million tonnes. In fiscal 2010, our production represented approximately 12 percent of the global market share and nearly 38 percent of the North American market share.

We will strengthen our leadership position with our focused and measured expansion investment strategy. With a world-class infrastructure already in place, our brownfield expansions are more cost effective than building greenfield capacity. We believe we can create significant shareholder value through a series of phased, multi-year expansion initiatives at our three Canadian mine sites — Belle Plaine, Colonsay and Esterhazy.

In fiscal 2010, we made great progress in our expansion strategy. The first phases at Colonsay and Esterhazy are near completion and will add about 300,000 tonnes of annual capacity that is expected to meet growing demand.

At our Carlsbad, New Mexico, location, we entered into new leases that unlock an additional 180 million tonnes of reserves to Mosaic. At projected production rates, these new reserves will boost our capacity to support mining operations at Carlsbad for more than 25 years.

Mosaic's potash cost structure will improve further as expansions come on line. With expected increases in sales and production volume, we can leverage the existing assets at our mines — driving lower per-tonne costs.

Over time, we expect the composition of Mosaic's net sales volumes to be approximately 60 percent potash and 40 percent phosphate, compared to a reversed ratio today. Given the higher return rates in the potash industry, this mix shift will drive significantly higher profitability. While we constantly keep our eye on the competitive landscape and new market entrants, we believe that our phased brownfield expansion strategy positions us to maintain our strong position in this sector and capture anticipated demand growth over the next decade.