Tuesday, December 1, 2009

Brazil plans fertilizers autonomy

I came across this article from Industrial Mineral:

Edison Lobao, Brazil's Minister of mines & energy, revealed to IM that he wants the country to become fertilizer self-sufficient by 2013. "We are big consumers of fertilizers and import 60% of our domestic demand. This is very uncomfortable for our country," he explained, underlying that as "one of the biggest food producers in the world" the country cannot afford "such a vulnerability".
Therefore, lobao, who has "great expectations" for B'razil's potash and phosphate resources, is carrying out a policy to get autonomy in fertilizers production in Brazil in the next four years.

At present, Brazil is the world sixth largest phosphate rock producer with 6.2 m tonnes, behind China (29%), the USA (18,5%) and Morocco (16,7%).

But Brazil hopes its phosphate production by using its still unexploited resources. For that to happen, the Ministry started a three-year campaign to estimate its phosphate resources in August 2008 which shuld end in August 2010.
According to Lobao, the country also plans to use the resources of Brazilian companies exploiting phosphate in South America such as mining giant Vale SA, which has phosphate project in Peru.

"We are doing a domestic effort but Brazilian companies are also doing their part abroad in order to guarantee the supply of fertilizer in our agriculture sector," Lobao said.

Brazilian officials have been considering fertilizer as a strategic resource for a while now. Minister of agriculture Reinhold Stephanes and Minister of strategis affairs Roberto Mangabeira Unger have been pushing for a national fertilizer strategy in order to break what they call an "unbearable dependence".
Brazilian agriculture heavily relies on chemical fertilizers to maintain its productivity. It consumed 22 m tonnes in 2008 and demand is projected to increase drastically over the next decade. Fertilizer authonomy is not going to be met anytime soon. But as Lobao mentionned in that interview, Brazilian giant Vale will contribute to secure fertilizer supply. Bayóvar project in Peru is already on track and Rio Colorado potash deposit is currently under development. Vale also has the intention to develop a potash deposit in Canada (bought form Rio Tinto) and eyes phosphate deposits in Tunisia and anywhereelse in Africa.
Fertintel will keep you informed of any further development on Vale's intentions to become a global fertilizer player.

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