Phosphate giant Mosaic agrees to pay $2 billion over mishandling of hazardous

(MOS – Get Report) stock is up by 0.39% to $30.26 in after-hours trading on Thursday, after the company reached a settlement worth almost $2 billion with federal regulators on alleged mismanagement of hazardous waste.

Mosaic Co. will settle claims about the handling of billions of pounds of risky waste at fertilizer plants in Florida and Louisiana by setting up a $630 million cleanup fund, which in time is expected to pay for almost $2 billion in costs.

The funds will also be used for the treatment of hazardous wastewater at the plants and two other plants already undergoing closure, the department said.

Joc O’Rourke, president and chief executive officer of The Mosaic Company, the parent of Mosaic Fertilizer, said the company is “pleased to be bringing this matter to a close” and that it has voluntarily made environmental improvements since EPA began the case. “And, it reflects our emphasis on working jointly with impacted states”.

That waste is stored in 500-foot-high piles that span more than 600 acres at facilities in Florida and Louisiana. “The commitments we are making through these settlements further those stewardship efforts”.

The Justice Department says the lawsuit has spurred Mosaic to change the way it does business and helps set the standard in the entire phosphoric acid industry.

Environmental protection agency supervisor Cynthia Giles known as circumstance “a most significant achievement for water that is clean, healthcare and villages across Florida and Louisiana”.

In Florida, the facilities covered in the agreement were located in Bartow, Lithia, Mulberry and Riverview.

As part of EPA’s National Enforcement Initiative for mining and mineral processing, the agency has required phosphate fertilizer production facilities to reduce the storage volumes of hazardous wastewaters, ensure that waste piles and ponds have environmentally-protective barriers installed and verify the structural stability of waste piles and ponds.

Mosaic produces phosphorus-based fertilizer that is commonly applied to corn, wheat and other crops across the country.

Mosaic, which is based in Plymouth, said it doesn’t expect that its production and operations will be affected by the settlement. Because sulfuric acid is used in the process, much of the waste contains high levels of acid.