Toronto-based Brazil Potash Corp. on April 9 announced that the Amazon State Environmental Protection Institute (IPAAM) has granted the mine Installation License for the Autazes Potash Project to the company’s 100%-owned Brazilian subsidiary Potassio do Brasil. It said this is a major milestone coming after several years of environmental, social, and technical studies, as well as the successful completion of consultations with Indigenous Peoples.
“We are thrilled to receive the mine installation license from the Amazon State Environmental Protection Institute,” said Adriano Espeschit, Potassio do Brasil President. “For several years, Brazil Potash has been waiting for this moment to show that [it] 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.”
“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 resulted in securing the mine Installation License,” said Matt Simpson, Brazil Potash CEO. “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.”
The company said this will finally allow construction to begin and it expects to start construction with the awarding of contracts for mine surface works and shaft construction. The company said the mine will be able to produce 2.4 million mt/y with the ability to increase production. The last price tag put on the mine was $2.5 billion.
Brazil Potash said the 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, Brazil Potash said the project has positive greenhouse gas credentials considering it will operate with predominantly green produced electric energy. Brazil domestic production also eliminates 12,000-20,000 kilometers of shipping to reach Brazil’s large soybean farmers in Mato Grosso.
The company noted that Brazil imports some 85% of its fertilizer needs and 98% of its potash, half of which comes from countries currently at war or sanctioned, including Russia, Belarus, and Israel, while Brazil has a massive potash deposit in its own backyard.
Brazil Potash said the project will have a positive impact on the economy and environment of the Amazonas state by reducing greenhouse gases by approximately 1.4 million mt/y and creating an estimated 10,000 new jobs, making it the largest contributor to the GDP for the state of Amazonas. In addition, the project will produce potash locally and sell it in local currency, thus saving Brazil roughly $1 billion in currency outflows.
The company said it is also committed to supplying potash in small quantities to domestic farmers as they need it, and to supporting the initiatives of the Brazilian government to restore degraded land.
Brazil Potash has also 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.