Brazil Potash Corp. has announced the closing of its Regulation A, Tier 2 offering of common shares, no par value per share, as of the end of July 2022. The company raised over US$40 million, and is well capitalized for ongoing operations as it prepares to increase output at its flagship Autazes Project.
Brazil Potash is an extraction company currently preparing for the implementation of the Autazes Potash Project 120 km southeast of Manaus. The company will serve customers in the agricultural sector of Brazil and intends to produce more than 20% of potash consumed by Brazil annually. Brazil Potash is still in the pre-revenue development stage and has not commenced mining operations yet.
Brazil Potash is aiming to reduce the strain of the global demand for potash amid record prices and global demand. The current record prices of potash are the result of a combination of increased global demand for potash and sanctions against Russia and Belarus, which hinder their ability to export potash. Since Russia and Belarus historically supply approximately 40% of the world’s potash, the current sanctions have further reinforced the need for domestic potash production in Brazil to help ensure global food security.
Potash prices have remained above $1,100 USD per tonne and Brazilian demand is currently robust, with imports of potash increasing 42% year over year to 3.1 million tonnes in the first quarter of 2022, according to Reuters.
The company’s management team, backed by a group of third-party experts, also recently finalized Brazil Potash’s Environmental, Social and Governance (ESG) report. The report confirms management’s beliefs that the Autazes Project will be one of the most environmentally clean potash projects in the world, emitting 79% less greenhouse gas emissions than existing potash producers. The report will be made available on the company’s website soon.
The Autazes Project is making a huge impact in the fight against climate change by reducing greenhouse gas emissions. The project will get 85% of its energy from renewable sources, and the company will avoid unnecessarily long distances when transporting its produced potash.
Autazes has support from all levels of the Brazilian government. The Brazilian Minister of Agriculture recently visited Canada to meet with fertilizer companies including Brazil Potash. The minister asked what the country could do to help accelerate the construction of the Autazes Project while offering support for the companies present and the industry in Brazil.
Beyond this visit, the Governor of Amazon, Wilson Lima, met with Adriano Espeschit, President in Brazil, and it´s ESG Director Lucio Rabelo to get an update on the project. The engagement and support from the Brazilian government reflect a strong initiative to bring new potash projects online in the country and reduce Brazil’s reliance on imports as soon as possible.
Brazil Potash has also engaged ERCOSPLAN, a German engineering firm, to update the company’s technical report and feasibility study for Autazes. The initial technical report and feasibility study were done by WORLEY in 2016 with strong support and participation from ERCOSPLAN.
Produced by: Mining Feeds