Could you give us some updates from Mosaic in Brazil?

We have made much progress on our blending unit project in Tocantins, a R$ 400 million investment, with plans for it to be operational in 2025. This year Mosaic also announced the launch of our Biosciences platform in Brazil. This move positions Mosaic to become a leading bio-nutrition company with science-backed products that address the interaction between the soil, the plants, and the microbiome to produce the best-growing results, which have many different benefits from both the producers' side and the sustainability side. We are continuing work on our MRE 60 project, which focuses on mass recovery improvements. This project has enormous cost and productivity gains and has a sustainability component, as it uses minerals in the most sustainable manner and reduces waste sent to tailings facilities. This multiyear project started in 2019 and is still working on the last few components.

Our investments in the MATOPIBA (Maranhão, Tocantins, Piauí e Bahia) region are very strategic for Mosaic in terms of getting into that region and having a large distribution center there with many positives from the logistics side. The project is planned to be operating in 2025 and will employ around 200 people. In the first year, plans are for it to produce and blend 500,000 t/y; by 2028, we aim to increase the volumes to 1 million t/y. Considering the region's agricultural growth, the volume of fertilizer deliveries is estimated to reach 9.3 million t/y between 2025 and 2032. This growth is significant, and this project will help to be the supplier of that need for fertilizer in the region. Can you discuss the introduction of the new Biosciences division in Brazil?

We have brought this to Brazil for a couple of reasons. One is that Brazil is one of the largest bio-markets in the world. Approximately 50% of Brazilian agriculture producers already use biologicals in their crop cultivation, making it a well-accepted practice in Brazil. This provides an excellent opportunity for us to develop this as part of our offerings. What are some general challenges Mosaic encounters operating in Brazil?

Compared to our North American operations, Brazil has a few different challenges regarding the potash reserves' temperatures and depth. The phosphate reserves differ significantly, presenting unique challenges in both mining and concentration processes. We share optimizations between geographies, but the differences require homing in on what has the biggest impact in each location. Brazil has more challenges affecting cost and productivity. Other challenges include different tax structures, sometimes higher taxes on imported equipment, and logistics issues, as most transportation happens via roads rather than rail. Workforce availability has also been a challenge, especially post-pandemic.

We are combatting these challenges by focusing on automation, which has benefits from an efficiency standpoint. Strong procurement practices and more attention to detail when hiring contractors have also been vital. Another strategy is projects like the MRE 60 project, focusing on process control and maximizing material recovery, which have direct cost and sustainability benefits. Can you discuss Mosaic's ESG commitments in Brazil?

Our global target is net zero emissions by 2040, focusing on scope one and scope two emissions. In Brazil, three main projects have significantly impacted our greenhouse gas emissions. The efficiency gains from the mass recovery project reduce water consumption and waste sent to tailings. The real-time steam balance project automates steam balance, using excess steam to produce energy consumed within the facility, reducing reliance on local utilities. The MIP 70 metallurgical recovery project aims to improve recovery rates from 60% to 70% with a US$10 million investment, reducing ore disposal by 30%. Finally, the Mosaic Institute also focuses on community engagement. In 2023 alone, the Institute invested R$10 million to support projects in 460 institutions to reach small farmers, people in vulnerable situations and public-school students. What are Mosaic's priorities in Brazil for the next 12 months?

The focus for the next 12 months includes finishing our project in Tocantins to get it operational, continuing to develop the Biosciences division, and advancing our cost-saving and sustainability projects. These initiatives align with our sustainability metrics, aiming for significant developments and solutions to be in place as we move towards our 2040 net zero emissions goal.