- INSTALLATION (CONSTRUCTION) LICENSES ISSUED FOR THE RIVER BARGE PORT, POTASH STOCKPILE AT THE PORT AND TO DRILL TWO WATER WELLS
- THESE LICENSES ARE IN ADDITION TO THE PREVIOUSLY ISSUED INSTALLATION LICENSE FOR CONSTRUCTION OF THE MINE SHAFT AND UNDERGROUND WORKINGS
MANAUS, BRAZIL, April 29, 2024 – Brazil Potash Corp. (“Brazil Potash” or the “Company”), through its 100% owned subsidiary company, Potássio do Brasil, received three additional Installation Licenses (LIs) on Friday, April 26th from the Amazon State Environmental Protection Agency (IPAAM), for construction of the Autazes Potash Project in the municipality of Autazes, 112 km away from Manaus. The three LI’s are for construction of a river port on the banks of the Madeira River, a stockpile at the port, and to drill two water collection wells for the Autazes Potash Project. This brings the total LI’s issued to four out of a total anticipated of eleven for the Autazes Potash Project construction with the remaining LI’s expected to be issued imminently.
The capacity of the new river barge port will have a higher capacity than the existing ports in the Northern Arc (Itacoatiara, Vila do Conde, and Santarém) combined, which are the main route of entry for imported fertilizers in the Amazon Basin at around 1.7 million tons. Potássio do Brasil’s port near the village of Urucurituba, in Autazes, alone, will supply 2.4 million tons of potash all targeting domestic farmers in Brazil.
The Company’s first license for construction of the mine shafts and underground workings was issued on April 8th, at an event attended by Amazon State Governor Wilson Lima and the President of IPAAM, Juliano Valente, along with several other government authorities including but not limited to Vice-Governor Tadeu de Souza; state deputies Sinésio Campos, Alessandra Campelo, Abdala Fraxe, Adjuto Afonso, João Luís; federal deputy Silas Câmara; the president of the Amazonian Association of Municipalities and Mayor of Rio Preto da Eva, Anderson Souza; the Mayor of Autazes, Andreson Cavalcante; the Mayor of Humaitá, Dedei Lobo; Secretaries of State, including the Energy, Mining, Oil and Gas, Ronney Peixoto; representatives of the commercial sectors and representatives from Mura indigenous people.
It is important to reiterate Potássio do Brasil complied with United Nations International Labor Organization Convention (ILO-169), which provides for free, prior, informed, and good-faith consultation with indigenous populations for the Autazes Potash Project. During this process, the Autazes Potash Project was approved by more than 90% of the 34 villages out of a total of 36 that compose the Mura people of Autazes which far exceeds the thresholds set by the Mura of having 60% participation in the vote with support of at least 60% of the people voting.
Since receiving the first LI, Brazil Potash has already started activities to implement the Autazes Potash Project, with the preparation of detailed engineering studies, an exhaustive review of the schedule of activities, and quotations for critical path services, including the drilling of a second geotechnical hole about 1,000 meters deep to obtain critical technical information for shaft sinking and construction.
“With Installation Licenses being granted for the mine, port, port stockpile and two water collection wells the Company is ready to start construction activities in the field, with the mobilization of personnel and equipment, within the areas foreseen and approved by the environmental agency”, highlighted the president of Potássio do Brasil, Adriano Espeschit.
The Company has also started to receive resumes from those interested in working on the Autazes Potash Project. A specific page was created on the Company’s website for interested people to submit their resumes http//www.potassiodobrasil.com.br/trabalho-conosco. In less than three weeks, hundreds of expressions of interest have been received showing the strong interest from the community to participate in Autazes Potash Project construction.
For potential suppliers of goods and services, the Company has also created a tab on the website http://www.potassiodobrasil.com.br/fornecedores and has also received a large volume of inbounds. Presentations on the Autazes Potash Project are planned for the coming weeks for those interested in participating in the contracting processes of products and services during the construction phase and, later, during the anticipated 25 years of operation of the Autazes Potash Project.
Further information can be found on the Autazes Potash Project by viewing the Company’s official website www.brazilpotash.com, and readers are encouraged to sign up to receive future updates to follow the Company’s progress.
ABOUT BRAZIL POTASH
Brazil Potash Corp. Canada, has been developing the Autazes Potash Project in the Amazon region since 2009 through its 100% owned Brazilian subsidiary Potássio do Brasil Ltda. The Company shareholders are composed of Brazilian, American, British, Australian, and Canadian investors, totaling 15% of Brazilian shareholders. The other 85% is composed of foreign investors, with prospects of attracting more Brazilian investors as the Autazes Potash Project is developed.
For more information, please contact:
Brazil Potash Investor Relations
Cautionary Note Regarding Forward-Looking Statements
All statements, other than statements of historical fact, contained in this shareholder update constitute “forward-looking statements” and are based on the reasonable expectations, estimates and projections of the Company as of the date of this press release. 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,” “would,” “might,” or “will be taken,” “occur” or “be achieved” and similar expressions identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding the granting of licenses for the construction of the Project and the future grant of additional licenses; the timeline to commence construction; Mura’s Indigenous people consultation process; the potash market globally and in Brazil; geopolitical tensions and opportunities; the potential benefits to Brazil and the Mura Indigenous people and the world from the Project; government support of the Company and its project; population growth and Brazil’s natural resources, the importation of potash in Brazil, the growth of the potash market and price expectations, advancing construction financing, offtake agreements, raising capital, completing a strategic transaction with a third party, environmental or community benefits, expected industry demands, the Company’s business strategy, the Company’s forecast of annual production and sales of potash, appointment of directors, currency fluctuations, government regulation and environmental regulation. Forward-looking statements are necessarily based upon 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 estimates and assumptions contained in this press release, which may prove to be incorrect, include, but are not limited to, the various assumptions of the Company set forth herein. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to the timing of the granting of licenses for the Project, opposition from third parties to the Project, fluctuations in the supply and demand for potash, changes in competitive pressures, including pricing pressures, timing and amount of capital expenditures, changes in capital markets and corresponding effects on the Company’s investments, changes in currency and exchange rates, unexpected geological or environmental conditions, changes in and the effects of, government legislation, taxation, environmental regulations, licensing, controls and regulations and political or economic developments in jurisdictions in which the Company carries on its business or expects to do business, success in retaining or recruiting officers and directors for the future success of the Company’s business, officers and directors allocating their time to other ventures; success in obtaining any required additional financing to make target acquisition or develop the Project; employee and community relations, and risks associated with obtaining any necessary licenses or permits. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements. These factors are not intended to represent a complete list of the factors that could affect the Company. 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.
