Globalization has brought many economic benefits to the fashionable society, however, the COVID-19 pandemic and the Russian invasion of Ukraine have given rise to an idea about the vulnerability of this paradigm to supply chain disruptions. While a primary shift to protectionism would backfire, for some key products, it would be prudent to build a domestic source. For agriculture, it is transparent that over-reliance on imported fertilizers can lead to problematic threat and burden scenarios.
This country plays a key role in the world’s food source because it has the land, water and climate to be highly productive. Brazil will have to continue its role in feeding the world.
Brazil is ultimately based on imports of 80% of its nitrogen and phosphorus fertilizers and 98% of its potassium source or “potash”. This is not the case. Until 2011, a large amount of potash was mined in the country, but when this resource began to decline, it was filled with imports. Imports are problematic because about 47% of the world’s source of potash comes from Russia and Belarus, leaving the world in a practical and moral dilemma over how to obtain this essential nutrient for crops.
There is a company called Brazil Potash that is looking for a solution from a national source. Its chief executive, Matt Simpson, sees its efforts as an example of “selective globalization” that balances the benefits of economic power with a desire to minimize the vulnerability of key industries. . It turns out that there are giant untapped potash deposits in the state of Amazona. Brazil can rely on imported potash by tapping into undeveloped domestic reserves, which is a win-win scenario for this exporter and its global customers.
Brazilian potash geologist with drill cores
The sites were traditionally controlled by energy giant Petrogas, and leased mining rights to Brazil Potash. Potash has an intensity of 2400 feet, but this new company has conducted exploratory drilling, loading and environmental impact testing to document the environmental impact. feasibility of mines. They raised the capital requirement and navigated the regulatory procedure. Their plan is to start extracting this resource until mid-2023. Mining 2,400 feet underground is really difficult, however, Brazil Potash envisions a “chamber and pillar” formula in which two giant axes can send aircraft and crews at that intensity. Once the mineral has been brought to the surface, a hot water procedure is used to dissolve the mineral, then crystallize the desired potassium chloride for the fertilizer and separate it from the sodium chloride. which is also found in the mineral (the same sodium chloride found in table salt, but it’s nothing you need to put in a crop).
It will be an energy-intensive process, however, in Brazil, 80% of electrical energy comes from renewable resources, especially hydroelectric, so the fertilizer they produce will have a particularly smaller carbon footprint than existing resources. There is even some other layer of power in which Brazil Potash will be able to ship its products on barges that make their adventure back from sending grain to the port for export. This will take place in the Madogrosso region, where many small villages are not yet connected to the national grid. grid power and therefore use diesel turbines for electrical power. Because the new mining justifies the investment in transmission lines, those communities will soon have access to much cleaner energy.
A welcome sign for the small town of Autazes (~34,000 inhabitants) which is located 20 km from the newArray mine. [ ]. The back of the sign reads “Welcome to the land of milk and potash. “
Brazil Potash raised $240 million for the project, first from seven key circles of family offices and sovereign wealth funds, and then from another 120 investors coordinated through CD Capital in the UK. Later, they filed a prospectus with the SEC in the United States consisting of allowing them to raise more financing from seven thousand investors. They have submitted 76 of the 78 documents needed to download regulatory approval to begin the mine structure, and expect a quick review as Brazil has prioritized in particular fertilizer independence at the political level. The “footprint” on the farm floor is relatively small and is situated in a grassland region, not in the rainforest. Within four years, Brazil Potash plans to produce 2. 2 million metric tons of fertilizer consistent with the year and eventually plans to grow to 12. 5 million. The original site has enough potash to last 3 four years and there are enough other known deposits for a three-hundred-year source. . This deserves to ensure Brazil’s role in feeding the world in the future.