Item 2. Properties
In our agribusiness operations, we have approximately 280 grain storage
facilities that are located close to agricultural production areas and export
locations. We also have approximately 50 oilseed processing plants and
approximately 25 international marketing offices throughout the world.
In our fertilizer operations, we operate five of the six major phosphate
mines in Brazil. We also operate approximately 19 processing plants, which are
strategically located in the key fertilizer consumption regions of Brazil,
thereby reducing transportation costs to deliver our products to our customers.
Our mines are operated under concessions from the Brazilian government. The
following table sets forth information about our mining properties:
Annual Production
for Years Until
the Year Ended Reserve
Name Product Mined December 31, 2003 Depletion
(millions of
metric tons)
Arax Phosphate and 6 18 (1)
other ores
Cajati Phosphate and 5 20 (1)
other ores
Catalo Phosphate and 6 36
other ores
Tapira Phosphate and 14 58
other ores
Salitre Phosphate and N/A (2) N/A (2)
other ores
º (1)
º We operate our mines under concessions granted by the Brazilian Ministry of
Economy and Public Works. The Arax and Cajati mines operate under
concession contracts that expire in 2022 and 2023, respectively, but may be
renewed at our option for consecutive ten-year periods thereafter through
the useful life of the mines. The number of years until reserve depletion
represents the number of years until the initial expiration of those
concession contracts. The concessions for the other mines have no specified
termination dates and are granted for the useful life of the mines. A
January 2004 evaluation of the reserves at the Arax and Cajati mines
indicates that the reserves are worth approximately $160 million, which is
in excess of the historical purchase price and carrying value of the mines
on our balance sheet.
º (2)
º Production at the Salitre mine has not commenced; however, annual
production is expected to be approximately 5 million metric tons per year.
This would result in projected depletion of the reserves in 97 years.
As a result of expansion in the Brazilian agricultural sector and the
related increase in demand for fertilizer, we have recently expanded our
fertilizer mixing capacity and intend to significantly expand our production
capabilities at our existing mines.
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In our food products operations, we have approximately 45 refining and
bottling facilities and approximately 26 other facilities dedicated to our food
products operations throughout the world.
The following tables provide information on our principal operating
facilities as of December 31, 2003:
Facilities by Division
Aggregate Daily
Productive and
Type of Facility Aggregate Size Storage Capacity
(m2) (metric tons)
Agribusiness 1,600,287 9,515,022
Fertilizer 1,448,920 2,478,998
Food Products 1,165,802 789,437
Facilities by Geographic Region
Aggregate Daily
Productive and
Region Aggregate Size Storage Capacity
(m2) (metric tons)
North America 1,034,483 7,012,779
South America 2,313,004 4,466,607
Europe 867,522 1,304,071
We own the majority of our principal facilities and lease the remainder.
In addition, we have access to port facilities in the United States and
Argentina through alliances and joint ventures. Our corporate headquarters in
White Plains, New York occupy approximately 32,000 square feet of space under a
lease that expires in February 2013. We also lease offices for our international
marketing operations worldwide.
We believe that our facilities are adequate to address our operational
requirements.
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