Brazil Potash through its wholly-owned subsidiary Potasssio do Brasil, has been granted three additional Installation Licenses (LIs) by the Amazon State Environmental Protection Agency (IPAAM) for the construction of the Autazes Potash Project in Autazes, located 112 km from Manaus. The licenses, issued on April 26th, cover the construction of a river port on the Madeira River, a stockpile at the port, and the drilling of two water collection wells. This brings the total number of LIs issued for the project to four out of an anticipated eleven, with the remaining licenses expected to be granted in the near future.

President of Potássio do Brasil, Adriano Espeschit, commented in a press release: “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.”

The first LI, allowing for the construction of mine shafts and underground workings, was issued on April 8th at an event attended by various government officials, including Amazon State Governor Wilson Lima, IPAAM President Juliano Valente, and representatives from the Mura indigenous people.

The new river barge port, situated near the village of Urucurituba in Autazes, will have a capacity of 2.4 million tons of potash, surpassing the combined capacity of the existing ports in the Northern Arc (Itacoatiara, Vila do Conde, and Santarém), which currently handle around 1.7 million tons of imported fertilizers in the Amazon Basin. The potash produced at the Autazes Potash Project will be primarily targeted at domestic farmers in Brazil.

Potassio do Brasil has complied with the United Nations International Labor Organization Convention (ILO-169), which requires free, prior, informed, and good-faith consultation with indigenous populations. The Autazes Potash Project was approved by more than 90% of the 34 villages out of a total of 36 that comprise the Mura people of Autazes, significantly exceeding the thresholds set by the Mura, which required 60% participation in the vote with support from at least 60% of the people voting.

Following the issuance of the first LI, Brazil Potash has initiated activities to implement the Autazes Potash Project, including the preparation of detailed engineering studies, a comprehensive review of the activity schedule, and quotations for critical path services. The company has also started drilling a second geotechnical hole approximately 1,000 meters deep to gather essential technical information for shaft sinking and construction.

Additionally, Brazil Potash has begun receiving resumes from individuals interested in working on the Autazes Potash Project through a dedicated page on the company’s website. Within three weeks, hundreds of expressions of interest have been received, demonstrating the strong community interest in participating in the project’s construction. Potential suppliers of goods and services can also submit their information through the company’s website, and presentations on the Autazes Potash Project are planned for the coming weeks to facilitate the contracting process for products and services during the construction and anticipated 25-year operation phases.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.