INSIGHT: Brazil Potash – King of the jungle? (ICIS.com – February 14, 2018)

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LONDON (ICIS)–Deep in the Amazon lies a wide clearing – an unremarkable space overlooked by jungle trees with little sign of human habitation. However, if muriate of potash (MOP) start-up Brazil Potash pulls off its plan, the sleepy jungle of Autazes could soon be home to the nation’s largest MOP mine – a scheme CEO Matt Simpson believes could vastly reduce Brazil’s near-complete reliance on imported potash fertilizer.

Simpson – an experienced industry professional in the field of mining – heads up Brazil Potash, which formed in 2009 with a simple plan: to provide Brazil’s immense agricultural industry with a homegrown source of the vital mineral fertilizer.

‘Potash’ is the umbrella term for a number of potassium-rich fertilizers used the world over to support plant nutrition, improve yields, and fend off disease.

A multi-billion-dollar industry, the global potash market is largely producer-controlled, and centred in just a few key producing nations, including Russia, Canada, Belarus, and Germany.

Brazil, meanwhile, cannot claim a burgeoning MOP industry of its own. In fact, despite being the world’s largest net exporter of agricultural products, Brazil Potash says the country imports 94% of its MOP from mines as far afield as 20,000km distant.

Brazilian granular potash prices edged to $300/tonne CFR (cost and freight) in late January – and are likely to increase further as continued availability concerns, strong demand, and high international freight costs combine to keep MOP producers bullish in their negotiations.

For the rest of this article: https://www.icis.com/resources/news/2018/02/14/10193485/insight-brazil-potash-king-of-the-jungle-/

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