Wilson Lima Issues Installation License for Brazil Potash’s Autazes Potash Project, Promising 2,600 Jobs in Installation Phase

 

Governor Wilson Lima, on Monday, April 8, 2024, delivered the first environmental license for the Autazes Potash Project managed by Brazil Potash in the municipality of Autazes, located 113 kilometers from Manaus. This decision marks the end of a 15-year waiting period, initiating a project expected to majorly boost the local and national economy. During its installation phase, the project is anticipated to create 2,600 direct jobs. Once operational, it’s projected to generate over 17,000 direct and indirect jobs, making it an important contributor in Brazil’s job market.

Wilson Lima commented at an event at the State Government headquarters: “The implementation of an activity like this generates social indicators, quality of life for indigenous people, work opportunities, employment, income, advances in sanitation, water supply, asphalting of branches, education, health, in short, what It’s important so you can have a better place to live.”

President of Potássio do Brasil, Adriano Espeschit, stated: “Today we can say that Amazonas has a sustainable mining project, starting with this event. With this installation license, we will ensure that it moves forward and that these numbers and results become reality as quickly as possible. Thank you very much to the entire State Government team.”

The project, focusing on the exploration of potassium, a critical raw material for fertilizer production, aims to fulfill 20% of Brazil’s national demand. This initiative could significantly reduce the country’s reliance on imported ore. Potassium from this project will not only support Brazilian agriculture but also contribute to global food security, as stated by Raul Jungmann, the director-president of the Brazilian Mining Institute (Ibram).

“Brazil’s agricultural sector feeds approximately 1 billion inhabitants on the face of the earth. This means that we will reduce our external dependence on this mineral, which is decisive for our production”, stated Jungmann, who sent Ibram’s Director of Relations, Alexandre Valadares, to represent him at the event.

Potássio do Brasil, the company behind this venture, plans to invest US$2.5 billion in the project, with R$1 billion already spent. The construction of the manufacturing plant alone, expected to take 4 and a half years, will provide 2,600 direct jobs. The operation phase will offer 1,300 direct jobs and an additional 16,000 indirect jobs, with an emphasis on employing local workers, aiming for up to 80% local labor use.

The environmental aspect has been a significant consideration. Granted by the National Mining Agency to Potássio Brasil in 2009, the project promises to be among the most environmentally friendly potash explorations globally. This includes low carbon emissions and minimal surface impact due to the high-tech, 800-meter-deep underground mining techniques.

The event, attended by various government and local officials, emphasized the project’s benefits for the Mura people and the entire Amazonas population. The project has gained approval from local communities, including the indigenous Mura ethnic group, and is committed to environmental and social responsibilities. This includes infrastructure investments, social and environmental programs, and workforce training.

“Our people come from a lot of struggles and a lot of race. Now, we are here facing this historic moment. This venture comes to benefit us and has been expected for many years. We followed all the protocols, we complied with all the rules and from now on I only hope for much success for our indigenous people”, said the coordinator of the Mura Indigenous Council, Kleber Mura.

A 165 km long power transmission line and a 12-kilometer road reconstruction are part of the infrastructure development plans. Additionally, a large port for ore transportation and support for family farming with 2% of Potassium Chloride production are also planned. These efforts aim to provide extensive benefits to the Amazonas population, ranging from job creation and income generation to regional infrastructure development and environmental preservation.

“Ipaam’s role is to ensure that all licensing requirements are met as long as it authorizes the activity. It is a historic milestone for the State Government, because it enables an economic matrix that, I point out that after the Manaus Free Zone, is the second biggest ‘boom’ in the economy of Amazonas”, said the director-president of Ipaam, Juliano Valente.

 

 

 

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.

By Matthew Evanoff

I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.

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