UPDATE 1-Mosaic seeks to sell Saskatchewan nitrogen plant

WINNIPEG, Manitoba, June 20 (Reuters) - U.S. fertilizer company Mosaic Co (MOS.N) and the Saskatchewan provincial government said on Friday they want to sell their jointly owned Saskferco Products Inc nitrogen plant at Belle Plaine, Saskatchewan.

Mosaic has a 50-percent stake in the 16-year-old plant, but wants to focus on its core businesses of potash and phosphates, the company said in a release.

The plant, one of the largest in the world, can produce 2,850 tonnes per day of urea per day and 1,860 tonnes per day of anhydrous ammonia, as well as 670 tonnes per day of urea ammonium nitrate, said Brad DeLorey, a Saskferco spokesman, who said another expansion is slated to come on line next year.

Mosaic said it would use proceeds from the sale to help with its plans to expand potash mining capacity in the province by 5.1 million tonnes in the next 12 years, as well as expansion in other assets.

"Providing that a fair value can be obtained, there is no longer any reason for the government to retain its minority ownership position" in the plant, Lyle Stewart, the government minister responsible for Saskatchewan's 49-percent stake in Saskferco, said in a release.

The remaining stake is held by Canadian Imperial Bank of Commerce (CM.TO), Saskferco spokesman DeLorey said. (Reporting by Roberta Rampton; Editing by Peter Galloway)