2011 Annual Report

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  • Home
    • To help the world grow the food it needs — that's the mission of The Mosaic Company. We believe in it. It inspires our decisions. But fulfilling that mission and achieving our success doesn't just happen...

  • Letter to Shareholders
    • Over the 30 years of my career in agriculture, the visibility and appreciation for Mosaic's mission has increased dramatically. Agriculture is entering a new green revolution, emerging as one of the global...

  • Financial Highlights
    • To help the world grow the food it needs — that's the mission of The Mosaic Company. We believe in it. It inspires our decisions. But fulfilling that mission and achieving our success doesn't just happen...

  • Best Crop Nutrition
    • Our goal is to be globally known as the best crop nutrition company. Achieving this recognition takes ambition and accountability to the stakeholders...

  • Potash and Phosphate
    • Our core values of sustainability and safety, combined with our portfolio of phosphate and potash, our financial strength and our unparalleled global reach help us to achieve our goal of being recognized as the best...

  • Customers and Suppliers
    • Every day, we strive to deliver what our customers value most — integrity, reliability, flexibility and a deep knowledge of what they need to succeed.

  • Operational Excellence
    • Achieving our goals means achieving higher levels of performance, every day.

  • Global Strength
    • Unlocking the opportunities of a global market takes real-time insights — the kind you only get from having your own presence in the world's major agricultural...

  • Sustainable Practices
    • True stewardship of our environment and our communities means maximizing the benefits we can obtain today, while developing solutions for...

  • Leadership Teams
    • James T. Prokopanko, James "Joc" O'Rourke, Linda K. Thrasher, Gary "Bo" N. Davis, Richard N. McLellan, Norman B. Beug, Lawrence W. Stranghoener, Richard L. Mack, Cindy C. Redding

  • Financial Review
    • Management's Discussion and Analysis of Financial Condition and Results of Operations, Report of Independent Registered Public Accounting Firm, Consolidated Statements of Earnings...

Although we are still early in our journey, we have already made good progress. For example:

  • In the current environment, the largest opportunity is often site production, and our operational excellence process has already helped substantially. In Phosphates, our Four Corners mine has greatly improved the coordination between our mining and plant operations, substantially improving productivity, establishing standard operating procedures and conducting performance dialogues at all levels of the site. The net result — purely from productivity improvements — is in excess of 300,000 tons over historic levels, which reduces the need to purchase external phosphate rock.
  • In Potash, our Carlsbad operation has increased K-Mag® production by 14 percent since the launch of our operational excellence initiative, and our K1 operation at Esterhazy has increased production by 9 percent. Since our focus has been on improving the efficiency of our current assets, these increased volumes have been achieved with almost zero additional capital.
  • Technical functional improvements have yielded similar results. For example, we have increased electricity generated by our phosphates chemical plants by over 12 percent and simultaneously increased transfers of internally generated electricity to our mines by approximately 50 percent. A focused effort on maintenance has nearly doubled productivity at many sites. A focus on water in Phosphates has identified an opportunity over the next five years to reduce process water inventory by 80 percent (eight billion gallons) and reduce our groundwater draw by 20 percent (six to seven million gallons per day).
  • Company-wide functions have also contributed to the operational excellence effort. In procurement, we have leveraged our scale and applied leading-edge sourcing methodologies to capture over $30 million ($20 million in Potash and $15 million in Phosphates) in annualized savings, with additional significant savings expected in the coming years.
  • Our efforts have also focused on capital productivity. By applying a more structured and disciplined portfolio approach to our capital, we were able to redeploy $35–$45 million from sustaining capital spend to opportunity projects ($20–$25 million in Phosphates and $15–$20 million in Potash), driving improved returns on invested assets. We plan to accelerate the shift from sustaining to opportunity capital over time.

And this is just the beginning for operational excellence improvements at Mosaic. Our journey will take several years and involve a fundamental shift in our mindsets and behaviors to become truly sustainable. Looking forward to 2012, we will make substantial improvements to cover the remaining operations and functions. In addition, we will complete the resourcing of our operational excellence teams in both Phosphates and Potash. Most importantly, we will continue to focus on hardwiring these improvement processes "in the line" at each site. This will require a focus on performance metrics-based discussions at each level in our organization and a capability-building effort focused on real-time problem solving.

We are making steady progress and are confident that this effort has momentum and will succeed, and that it will ultimately provide us a sustainable competitive advantage over our industry peers.

A measure of mechanical productivity, improving "wrench time" is one way that Mosaic is pursuing operational excellence throughout the company.