Brazil: Global fertilizer crisis creates pressure for mining in the Amazon

RIO DE JANEIRO, BRAZIL – The consequences of Russia’s military operation in Ukraine could reach all the way to the Amazon rainforests, as Brazil sees global disruptions to fertilizer supplies as another reason to produce more of these products on its own.

Insufficient domestic supply of agricultural nutrients has been a stone in Brazil’s shoe for decades, as the agricultural superpower imports about 80% of its needs. The war in Ukraine has led Brazilian farmers to struggle to buy fertilizer, which amplifies a debate over exploiting potash reserves in the Amazon, including on indigenous lands.

President Jair Bolsonaro this week expressed support for increasing domestic production of potassium-based nutrients as part of his effort to expand the development of the biome. Industry groups have bolstered the chorus as global turbulence exposes the fragility of supply chains. The debate pits the need to feed the world against protecting the most biodiverse place on earth.

“With the Russia/Ukraine war, today we run the risk of potash shortage or increase in its price,” said President Jair Bolsonaro on his Twitter account. “Our food security and agribusiness (Economy) require from us, Executive and Legislative, measures that allow us not to depend externally on something we have in abundance.”

Bolsonaro called on lawmakers to pass a controversial bill that would allow mining in indigenous territories. His comments have been criticized by indigenous groups, who say the government’s proposal threatens the communities’ health and rights. Environmentalists have criticized a recent government decree supporting artisanal mining for encouraging illegal activities that endanger rainforests.

According to a geological survey by the Brazilian Geological Service – CPRM, a public company, potash production potential in the Amazon Basin is similar to that in the Urals region of Russia and Saskatchewan, Canada.

Deposits belonging to Petrobras and Potássio do Brasil (“Potash of Brazil”), a company controlled by the Canadian Forbes & Manhattan, add up to 3.2 billion tons of resources. Other areas analyzed may double this volume.

“We cannot abandon potash exploration in the Amazon,” said CPRM director Marcio Remedio. “It is strategic in economic growth, inflation (control), and food security.”

The Potash of Brazil project and two other phosphate initiatives have qualified for a government program created to accelerate strategic mining projects. Now, mining companies represented by the Brazilian Mining Institute (Ibram) want the government to create a working group involving Brazil Potash to accelerate its potash project in Autazes, Amazonas, as the Black Sea strains increase the risk of fertilizer shortages.

Farmers also agree.

“These times make us discuss the need to extract potash in Brazil. We have large reserves, but unfortunately, they are on indigenous lands,” said Bartolomeu Braz Pereira, president of Aprosoja, an association representing soy products. “We cannot depend on other nations for fertilizer supplies.”

For Greenpeace, the government’s attempt to speed up the vote on the Amazon mining project shows its disrespect for indigenous rights and inability to deal with the situation.

“The current government lies by suggesting that the bill’s approval would be able to solve an eventual fertilizer supply crisis, omitting that solutions to this type of problem require medium and long-term planning,” said Danicley de Aguiar, spokesperson for Greenpeace Brazil.

The Canadian mining company took the first steps in the project in 2008. It obtained a preliminary license later suspended by a settlement in federal court that required prior consultation with the indigenous Mura people. The US$2.3 billion project is expected to be ready within five years of obtaining the installation license, with an expected annual production of 2.4 million tons of potassium chloride.

Even if Brazil gives the green light for mining on indigenous lands, opening a potash mine in the Amazon brings challenges such as energy supply and the technology to drill up to one kilometer deep.

“A licensing process of this size takes at least three to five years, so it’s not going to solve the crisis,” said Suzi Huff, a geologist and professor at the University of Brasilia.

Brazil is processing 535 applications for potash exploration rights despite the bottlenecks, although not all are in the Amazon. It represents a 49% increase from the end of 2020.