Owning a potash mine in Brazil is like controlling a water-well in the middle of the Sahara Desert.
Brazil is the world’s third-largest consumer of potash. In 2012 it imported 7.5 million tonnes of potash – about 90% of its total consumption.
The country has a single operating potash mine operated by Vale (VALE-NYSE). This mine produces about 8% of Brazil’s potash needs. It is due to be exhausted by 2016.
The Brazilian government has stated its goal to become “fertiliser Independent” by 2020, which means a number of potash projects are going to be fast-tracked to production.
Pacific Potash (TSX-V: PP) (OTCQX: PPOTF) (FSE: P9P) is poised to be one of them.
Pacific Potash has a 100% interest on 795,824 hectares within the Amazonas Basin in Northern Brazil. The Properties are situated approximately 20 and 40 kilometers from Petrobas’ Arari and Fazendinha potash deposits.
Central location for Brazil and South AmericanAccess to ports, railways, airports and roadsClaims are located near major cities
Brazil is the 3rd largest importer of potashUses 80% of all potash supplied to South AmericaConsumption in Brazil has grown 5% a year for the last 10 years.Brazil is attempting to reduce imported potash dependency from 93% to 60% over the next 5 years
Brazil is the world’s largest growing potash marketThe country exports 27% of all global meatBy 2016 it’s meat exports will overtake U.S, Canada, Australia, and ArgentinaAgricultural exports exceed $175 billion a yearBrazil soils are potassium deficientSoybeans, rice, and corn are all strategic cropsWorld leader in ethanol production from sugar
Brazil’s government is actively trying to decrease imports of fertilizerBrazilian government is streamlining processes exploration and development of target areasWorld renowned companies are exploring the Amazonas Basin (Petrobras, Vale, etc.)Amazonas state is the country’s only free trade state.
Pacific Potash recently completed NI 43-101 compliant technical report on its Amazonas Basin Potash Project.
“The completion of this report confirms that there is a great opportunity for the development of potash within the confines of our property,” states Pacific Potash Executive Chairman Balbir Johal.
Current exploration programs by Brazil Potash and Cowley Mining affirm that the Amazonas Basin has world class potential.
Minimum 25 hole drill program, 4 rigs currently on the propertyNI 43-101 Resource report expected for Q3 2013Planned Q12014 listing on the BOVESPA exchange with a planned IPO of 500 million to 1 billion dollarsClaims are adjacent to Pacific PotashPrivate company based out of BrazilRaised 100 million + privately to date
Planned 12 hole drill program.Currently raising 25-25 million dollars privatelyNI 43-101 initial reserve report planned for Q4 2013Claims are adjacent to Pacific PotashPrivate company based out of London
Pacific Potash’s 795,824 hectares are on trend and surrounded by Brazil Potash and Cowley.
Brazil is in desperate need of a domestic source of potash which would eliminate high transport costs.
2012 was the second consecutive year in which Brazil was the largest global importer of potash, while its production continues to decline.
Pacific Potash is currently trading at $0.16 with a market capitalization of $9 million.
Legal Disclaimer/Disclosure: A fee has been paid for the production and distribution of this Report. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this article should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. Financial Press makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author’s only and are subject to change without notice. Financial Press assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this article and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this article.