Sao Paulo-Vale S.A. said July 12 that over the past weekend it initiated production at the Bayóvar phosphate mine, which will be formally opened Aug. 5. Located in Piura in northern Peru’s Sechura province, the mine has an annual production capacity of 3.9 million mt of phosphate rock. Total investment in the project, which began in 2007, is estimated at US$566 million. In addition to the mine itself, the new operation includes a phosphate concentration plant, a 32-kilometer road, a conveyor belt system, and a maritime terminal. Vale just completed the addition to two joint venture partners – The Mosaic Co. and Mitsui & Co. Ltd. (GM July 12, p. 8). While these partners are expected to take product from the mine, Vale expects much of it will be shipped to Brazil as the country imports 53 percent of its phosphates and 90 percent of its potash needs. The Peruvian greenfield is Vale’s first project in the international phosphate market. Besides Bayóvar, in the fertilizer business, Vale owns the Taquari-Vassouras mine in Sergipe, the only potash mine in operation in Brazil, and has an attractive project development pipeline. Vale is developing potash assets in Carnalita (also in Sergipe), Rio Colorado and Neuquén (Argentina), and Regina (Canada). Vale is also developing a phosphate project in Evate, Mozambique. At the end of May, Vale completed the acquisition of the Brazilian fertilizer assets of Bunge and the control of Fosfértil. Fosfértil is developing a new phosphate mine in Patrocínio, in the state of Minas Gerais.
Transparency Across the Fertilizer Value-Chain