Hardee County commissioners authorize Mosaic corporate guarantee for mining reclamation assurances

Hardee County commissioners authorized execution of a corporate guarantee from Mosaic Companies to satisfy financial-assurance requirements tied to mining reclamation for the remainder of the current year. The action was taken during the board's regular meeting in the Commissioners' Chamber and followed staff and attorney presentations about the annual review process.

County Attorney Sarah Johnston said the corporate guarantee was submitted to the board as part of the county's annual review and provides "financial reassurance to the county" that Mosaic will cover reclamation obligations for active fertilizer and mining activities until the next annual review. "If you're comfortable with it, you can provide authorization to execute," Johnston told the board.

The guarantee replaces the prior practice of accepting Mosaic's financial statements at year-end. Commissioner Miller characterized the guarantee as "a step forward," saying the prior approach — relying on year-end financial statements — provided no guarantee of future ability to respond if the company idled assets or went bankrupt. Miller added, "It's still only as good as they are financially" and suggested the county pursue stronger mechanisms over time to ensure funds would be available in a catastrophic business failure.

Commissioner Chaney said he had discussed the item with the county attorney and had "no issue" with the guarantee so long as the Mosaic company that holds the stock would be the guarantor. Commissioner Wells moved to authorize execution of the corporate guarantee; the motion was seconded and passed unanimously. The board recorded no additional conditions on the authorization at the time of the vote.

Johnston told commissioners there is no additional public-notice requirement for this guarantee because it was part of an annual report process that had been noticed and heard. She also clarified the guarantee covers "the remainder of this year" and that the county will review financial-assurance arrangements again as part of next year's annual review process, which typically occurs in the spring.

Commissioners said they may pursue alternative financial-assurance mechanisms when Mosaic returns as part of the next annual review. For now, the board accepted the corporate guarantee as an interim measure while staff and the county attorney continue to explore options to strengthen reclamation assurance in the event of market or business failures by the guarantor.