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Oct 1 (Reuters) - Fertilizer maker Mosaic Co has reached a settlement worth more than $800 million with U.S. regulators over its waste management practices at plants in Florida and Louisiana.
The company’s shares fell as much as 1.7 percent to a near seven-year low of $30.58 in morning trading on Thursday.
The claims were related to the storage and disposal of phosphoric and sulfuric acids at some of Mosaic's plants, the U.S. Department of Justice and the Environmental Protection Agency said on Thursday. (1.usa.gov/1N4aUj2)
Mosaic will set up a $630 million trust fund, which will be invested until it reaches $1.8 billion, to “cover future closure of four Mosaic facilities - the Bartow, New Wales and Riverview plants in Florida and the Uncle Sam plant in Louisiana...” the Department of Justice said.
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.
The company will pay a penalty of $8 million and invest $170 million in modifying its waste management practices.
It will also set up environmental projects valued at $2.2 million in the two states.
Mosaic said it did not expect the settlement to “adversely’ hurt its output volumes.
The deal has to be finalized by the federal court, the company said. (Reporting by Anannya Pramanick in Bengaluru; Editing by Anil D’Silva and Kirti Pandey)