Brazil is the third largest global potash importer – depending on imports to supply 90% of its demand. Potash consumption in Brazil is forecast to increase from 8.1 million tons to 9.7 million tons by 2015 as the Brazilian government aims to decrease the country’s dependence on imports from 90% to 60%. To do so, the country will need to look to the Amazonas Potash Basin for future supply because the country’s only potash mine, Taquari-Vassouras in Sergipe is expected to be depleted by 2016. Vancouver-based Pacific Potash Corp. is looking to develop the Basin and is the only public potash play currently in the Amazonas. The company has announced a $10 million financing agreement with the Chinese state owned enterprise CapitalAsia which is a cornerstone investor in Pacific Potash and a strategic advisor. Upon completion of the financing which is expected to occur within 60 days, Pacific Potash will have raised C$16.35 million year to date. $12 million will be used for a drilling program consisting of six exploration holes. Pacific Potash’s Amazonas Potash Project is across the river from the city of Itacoatiara which is home to the country’s second largest soybean export terminal. Currently the barges return empty providing an available back-hauling system to deliver potash to domestic Brazilian market representing a savings to the company of up to $167 per ton.
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