Potássio do Brasil, which is proposing to mine potash in Brazil’s northwestern Amazonas state, is working to keep the US$2.5 billion project on schedule amid mounting legal challenges to its plans.
The company, owned by Toronto-based Brazil Potash Corp., is proposing to build a mine and processing facilities with an initial capacity of 2.4 million mt/y of potassium chloride in Autazes, some 120 km southeast of the Amazonas state capital of Manaus.
In an interview with Reuters this week, Potássio do Brasil President and Brazil Potash Corp. Chair Adriano Espeschit spoke of a protracted licensing process, which continues to hinge on court-supervised talks with the Mura Indigenous people, who have the right to be consulted under an International Labor Organization.
The company in June last year (GM June 3, 2022) said it had finally begun a consultation process with Indigenous inhabitants more than a decade after it first started prospecting. While Potássio do Brasil has promised jobs and prosperity for the municipality of Autazes, Indigenous Mura communities are worried that the development could pollute rivers and kill the fish that they depend upon.
However, the company claims the mine would only have a minor environmental impact given that the project plans to return processing waste underground. While consultations with the Mura have no fixed timeline, Espeschit insists the project remains on track to start production in 2026, according to this week’s report.
According to Brazil Potash Corp.’s website, Espeschit said Potássio do Brasil already has secured the preliminary license issued by Amazonas’ state environmental authority, IPAAM, and now needs only to secure the installation license, which it expects to receive this year.
But federal prosecutors have asked a judge to halt consultations with the Mura until a final decision is reached on the demarcation of a proposed Soares/Urucurituba Indigenous reservation overlapping the proposed mine site.
The proposed potash mine gained fresh momentum last year, fueled by global supply shortages and soaring potash prices. Brazil’s previous Bolsonaro-led government defended mining on Indigenous land to boost domestic fertilizer production and cut dependence on imports. Global potash prices have since eased significantly, however, with the Brazil CFR granular price falling to $400-$440/mt versus $1,100-$1,250/mt a year ago.
Brazil Potash last October announced it had signed binding agreements with Amaggi Exportação e Importação Ltda. (Amaggi), one of the world’s largest privately held soybean producers (GM Oct. 7, 2022). The offtake would include take or pay for 500,000 mt/y, a marketing agreement to sell Potássio do Brasil’s remaining 1.9 million mt/y, and a barge transportation agreement to ship the initial planned 2.4 million mt of potash to inland ports close to major farming regions.