- In addition to the 14 critical licenses previously granted to start construction, the state environmental agency, IPAAM, has now issued the remaining seven licenses.
- Brazil Potash is now fully permitted to construct its Autazes potash project
- Following construction, management projects production of 2.4 Mt of potash per year with potential to supply 20% of Brazil’s annual consumption
- Management plans to supply 100% of the potash produced at the project to local Brazilian farmers
AMAZONAS, BRAZIL, August 13, 2024 – Brazil Potash Corp. (“Brazil Potash” or the “Company”) has obtained, through its wholly-owned subsidiary Potássio do Brasil Ltda., all of the necessary permits and licenses required for construction of its Autazes Potash Project (the “Project”), which will produce potash — an essential fertilizer for the food security in Brazil and the world. The Project is located in the municipality of Autazes, Amazonas, on low density former cattle farmland and its construction will not impact any primary growth rain forest. A total of 21 Installation Licenses, Specific Environmental Licenses, and Authorizations for the Capture, Collection, and Transport of Wild Fauna were issued by the Institute of Environmental Protection of Amazonas (IPAAM). These licenses allow for the construction of the Project including the sinking of two mine shafts, and construction of the processing plant, river barge port and ~13 kilometer road connecting the processing plant to the port.
Based on the issuance of some earlier Installation Licenses, preliminary construction has already started including the drilling of two wells, both for collecting drinking water, each at a depth of about 130 meters. These works were completed in the vicinity of the village of Urucurituba, in Autazes, and this work benefited the local community through the contraction of accommodation services and food service providers.
Brazil Potash is ensuring strict compliance with all environmental criteria established in the licensing documents for the Autazes Potash Project. As construction progresses, management expects opportunities will emerge for the communities of Autazes and the region. The procedures for hiring personnel for civil construction have already been initiated, and direct and indirect jobs are being boosted through a network of service providers and suppliers who register for free on the Potássio do Brasil website.
Management believes that the construction of the Autazes Potash Project will contribute to regional and national development and, mainly, to food security in Brazil and the world. “This crucial achievement allows us to move forward in the construction of the large-scale project, which has already started with initial activities on site, but will last an average of four years to be fully ready for operation. We are finalizing the planning of necessary tasks, such as the relocation of wildlife, archaeological surveys, and the suppression of vegetation in an appropriate and environmentally responsible way. These preparatory efforts are essential to lay the groundwork for the start of civil works by the end of this year. Until then, we are preparing for large-scale construction activities on several fronts, representing a significant advancement in the development schedule of our Project. We believe that the Project will create increased benefits for the communities in the region”, highlighted Adriano Espeschit, President of Potássio do Brasil.
Upon completion of construction of the Project, and subject to government inspection to ensure that the Project was built in compliance with strict safety standards and Brazilian legislation, Potássio do Brasil expects to obtain the required Operating License and the Mining Concession. The Project is estimated to have an extraction and operational period to mine potash ore for at least 23 years.
Sustainability
Brazil Potash is also committed to using primarily renewable energy for its operations. This aligns with Brazil’s overall strategy to remain a global leader in renewable energy adoption. By using primarily renewable sources, the Company aims to offset approximately 1.2 million tons of carbon emissions annually, contributing positively to environmental sustainability. The power grid operations will be connected to the national grid via a transmission line, ensuring a reliable and sustainable power supply that will also benefit local communities who currently rely on diesel generators.
Mura Well Living Plan
The implementation of the Project will take place in proximity to local communities, and, in particular, to the Mura de Autazes Indigenous People. Brazil Potash, as detailed in its Presentation Booklet of the Autazes Potash Project, has been advancing conversations with community leaders, building a relationship that is reflected in socioeconomic and environmental improvements for indigenous and non-indigenous communities. Because of this relationship, Potássio do Brasil supports implementation of the Mura Good Living Plan, developed from consultations between all Mura villages represented by the Mura Indigenous Council – CIM.
The Company donated 20,000 seedlings grown in a nursery owned by Potássio do Brasil. “We have donated seedlings to contribute to reforestation in the municipality of Autazes and the surrounding region,” says Espeschit. The Company is committed to implementing around 30 socioeconomic and environmental programs, many of which are aligned with the interests and programs proposed by the Mura People.
The Mura de Autazes people are made up of 36 villages and are represented by the Mura Indigenous Council (CIM), and the Company’s consultations with the Mura People are fully compliant with the Protocol of Consultation and Consent of the Mura de Autazes Indigenous People, developed in accordance with International Labor Organization 169 (ILO 169) protocols of the United Nations for free, prior and informed consultation. At the Mura People’s General Assembly, held in September 2023, a total of 94% of the villages represented approved the Project, far exceeding the criteria established by the Mura people themselves, being a minimum of 60% voter turnout with a minimum of 60% votes in support of approval.
For more information, please contact:
CBS Comunicação (+55 92) 98802-4432 // (+55 92) 99983-6147
imprensa@potassiodobrasil.com.br
Cautionary Note Regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained in this press release constitute “forward-looking statements” and are based on the Company’s reasonable expectations, estimates and projections as of the date hereof. The words “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could” or “will be taken,” “will occur” or “will be achieved” and similar expressions identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding the appointment of permit grants, discussions with indigenous communities and other stakeholders, the progress and construction of the Project, the status of the Company’s project, government regulation and environmental regulation. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements.
