London-based Amazon Mining, a mineral exploration and development company founded by Brazilians in 2005, has signed a MoU (memorandum of understanding) with the Minas Gerais State government for the implementation of an industrial unit and the installation of a distribution centre located in the State of Minas Gerais destined for the manufacturing and commercialization of ThermoPotash, MOP (potassium chloride) and SOP (potassium sulfate). Amazon Mining Holding will operate through a subsidiary called Verde Fertilizantes and the project which will be located in Cerrado Verde.
About 80 percent of the Brazilian potash market, which is of some 7 million tonnes MOP per annum, is supplied by Canadian and Russian exporters. Up to now, domestic supply was given exclusively by Vale, from its Sergipe site, accounting only for some 8 percent of the demand. Verde Fertilizantes is planning to reach an annual production of 1.1 million tonnes of ThermoPotash, which will enable the sales of 0.35 million tonnes MOP yearly.
Up to now, the ThermoPotash manufacture was always discarded because of its high energy consumption, but Verde Fertilizantes said they plan to use petroleum coke instead of electric energy o natural gas.
Brazil is the world’s fourth-largest fertilizer consumer. Last April, sales for granular potash have been concluded in Brazil at US$520 cfr and above.