Águia Fertilizantes awaits court decision to proceed with a phosphate producing project

Águia Fertilizantes, a member of Águia Resources, stated on May 04 that it is awaiting a soon-to-be-released judicial authorization to proceed with its phosphate mine project, which will include a production plant in the municipality of Lavras do Sul in the state of Rio Grande do Sul.

With a capacity of up to 300,000 tonnes per year, the plant could meet more than 10% of the fertilizer demand in Rio Grande do Sul, a major grain-producing state in Brazil.

Águia has already invested nearly 80 million reais in this project, while another 30 million reais are ready to be disbursed by the company to complete the necessary works.

According to Fernando Tallarico, CEO of Águia Fertilizantes, the Courts are about to submit their decision on whether a lawsuit filed in an attempt to stop the project is to be deemed valid or not.

The executive stated that, since Brazil is dealing with fertilizer shortages and high prices due to the Ukraine conflict, the company’s project may provide phosphate-based fertilizers at “competitive” prices.

He also mentioned that the future scenario is favorable for the fertilizer market due to increased global food demand. “There will be more people, more food, and more fertilizers on the market.”

The company stressed that the project, which involves surface mining, will allow the application of fertilizer directly to the soil, and – since the product is not chemically processed like other phosphates – it can be certified as an organic product.

See below the track record of Brazilian Fertilizer Imports from Russia, the country’s main supplier of fertilizers, from January 2021 to February 2022. The data are from DataLiner.

Brazilian Fertilizer Imports from Russia |Jan 2021 – Feb 2022 | WTMT

Source: DataLiner (click here to request a demo)

The plant in Lavras do Sul is the company’s first project and the one closest to generating cash flow for the company, which also has phosphate and copper initiatives in the same region.

In addition to Águia, other fertilizer producers are taking advantage of the momentum of rising prices in Brazil, such as Verde Agritech, which recently announced the beginning of studies to construct a third potash plant in Minas Gerais.

Source: Money Times

To read the full original article, please go to:

https://www.moneytimes.com.br/aguia-fertilizantes-aguarda-justica-para-encaminhar-projeto-de-fosfato-no-rs/

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