By Anthony Boadle

BRASILIA – The Toronto-based Brazil Potash Corp presented this week to Brazilian President Jair Bosonaro their plans for reducing Brazil’s dependence on foreign fertilizer imports. This was done by opening a Potash Mine in Amazon.

Stan Bharti the investment banker, who is the company’s owner met Bolsonaro to talk about the $2.5 Billion project. This was delayed in 2017 because of a suspension of an environmental permit that expired pending consultations between the Mura tribe.

Bolsonaro stated to Bharti that the government was dedicated to “unlocking” fertilizer project such as the Potash mine, which is strategic for Brazil. Former Senator Cidinho Santos attended the meeting and posted an Instagram photo on Wednesday.

Bolsonaro’s decision not to approve the Autazes Mine, located 75 miles (120kms), southeast of Manaus State Capital, was not made lightly. Now, the project is dependent on Federal Judge Jaiza Fraxe’s ruling. He monitors talks with Mura to ensure they get a fair hearing.

Due to the triple-digit increase in potash prices and threats from Russia and Eastern Europe last year, there is increasing pressure from Brazil’s farming sector to open its potash mine. It relies on imports to 85% of its fertilizer and has seen their yields drop.

Brazil is the largest soybean producer in the world. It imports potash from China, Canada, and Morocco for almost half its supplies. However, Russia and Belarus are responsible for more than half the supply. Unfortunately, sanctions against Russia have severely impacted Russia’s exports.

Potassio do Brasil, a subsidiary of Brazil Potash, which is wholly-owned by Bharti’s Forbes & Manhattan bank, said it would take three years to get the mine operating, with an output of 2.44 million tonnes per year once permits are obtained.

Adriano Espeschit, Chief Executive of Amazon Environmental Protection Agency IPAAM stated in an emailed statement that “as soon as we have the environmental license restored, then we will apply for an installation licence from Amazon and begin work.” “We expect to begin producing in Autazes around the turn of 2026.”

Espeschit stated that the company acknowledges Mura’s right under ILO convention 169 regarding indigenous and tribal peoples. Meetings have started after two years of delay because of the COVID-19 pandemic.

The office of Judge Fraxe did not respond to my request for comments on the meeting. Claudio Mura is the head of an indigenous council in the area. He declined to answer a telephone call about how things were.

Fernando Soave was the first to call for suspension of the license in 2016, after the Mura hadn’t been consulted. He didn’t immediately answer questions.

His office stated that exploratory drilling to find potash deposits was started in the area by the company in 2009, without consulting the Mura tribe, which claim the land for their ancestral lands. The Brazilian government, however, has never recognized the claim.

Brazil Potash claimed the mine entrance would not occur on any indigenous land. This is a Mura issue. It also stated that the potential environmental effects of the mining potash deposit 800 meters below ground level will be minimal.

Prosecutor’s Office has expressed concern about the impact of this project on cultural and social life for the Mura people. Because they include 44 Mura villages, consultations are likely to take some time.