08:55 AM EDT, 03/25/2024 (MT Newswires) -- Compass Minerals International ( CMP ) said Monday that the US Forest Service has decided not to enter into a contract for the supply of magnesium chloride-based aerial fire retardants for the 2024 fire season due to safety concerns.

The company said the USFS notified Compass that it could not define the terms of a new contract until a detailed assessment by the National Transportation Safety Board and National Institute of Standards and Technology is conducted.

"We have to assume based on this new information that Fortress' proprietary, magnesium chloride-based aerial fire-retardant formulation will not be utilized for the foreseeable future in the fight against wildfires," Compass Chief Executive Edward C. Dowling Jr. said.

Shares of the company were down 4.4% in recent Monday premarket activity.

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