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Brazil Potash receives mine installation license to start project construction in Brazil

Published by , Editorial Assistant
World Fertilizer,

Brazil Potash has announced the Amazon State Environmental Protection Institute (IPAAM), has granted the mine Installation License for the Autazes Potash Project to the 100% owned Brazilian subsidiary Potassio do Brasil, allowing for construction to commence.

This is a major milestone in the Company’s development and follows several years of environmental, social, and technical studies as well as the successful completion of local Indigenous People’s ‘free, prior, and informed consultations’.

Brazil Potash’s mine Installation License was granted at a ceremony organized by Amazon State Governor Wilson Lima, and attended by IPAAM President Juliano Valente, State Deputy Sinesio Campos, Potássio do Brasil President Adriano Espeschit, several other government officials, and major press outlets recognising the importance of establishing a sustainable domestic source of potash in Brazil for global food security. The Company expects to start construction with the awarding of contracts for mine surface works and shaft construction.

Global food security depends on the continued success of Brazilian agricultural exports. The country is a leading producer and exporter of orange juice, soybeans, corn, sugar and cotton as well as beef, poultry and pork. Abundant arable land, good year-round weather and efficient farming have made Brazilian farmers among the most productive globally, contributing roughly 30% to Brazil’s GDP. Critical to Brazil’s continuing productivity is access to affordable fertilizers. However, Brazil is highly exposed as it imports 85% of its fertilizer needs including 98% of its potash, half of which comes from countries currently at war or sanctioned, including Russia, Belarus, and Israel, when a massive potash basin exists in its own backyard. Now, with the License approval, Brazil can produce this essential mineral for its farmers in country, by-passing the risk and costs of imports. Potash is extremely important to efficiently grow food as it strengthens the stem of plants to make them more resilient to stresses caused by drought, extreme temperatures, and insect infestation.

Brazil Potash’s Autazes deposit can be mined and processed, using proven off the shelf environmentally friendly technology, to extract the ore using room and pillar mining, separate out the potash using hot water and return the remaining material (sodium chloride tailings) back underground. From an environmental perspective, this project has positive greenhouse gas credentials considering it will operate with predominantly green produced electric energy (Brazil has 84%+ renewable energy in its grid). Production in country also eliminates 12 000 – 20 000 km of shipping to reach Brazil’s large soybean farmers in Mato Grosso resulting in clear benefits to Brazil and for global food security.

“We are thrilled to receive the mine installation license from the Amazon State Environmental Protection Institute. For several years, Brazil Potash has been waiting for this moment to show that is possible to have a sustainable mining operation in the Amazon region. With the Autazes Potash Project’s support from the Mura Indigenous people, we can show the world that it is possible to have more development for local communities with a better quality of life. This truly marks a win-win for Brazil’s economy, its people, and the world,” said Adriano Espeschit, President of Potássio do Brasil.

Brazil Potash’s CEO, Matt Simpson, commented, “I am very proud of the years of permitting, indigenous, government, and community relations work completed by our team in Brazil headed by our President Adriano Espeschit, which has resulting in securing the mine Installation License. This is a major milestone to advance and derisk the development of the Autazes Potash Project as we move closer to the start of project construction”.

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