Petrobras Announces Project to Sell Potash Mining Assets in the Amazon Basin to Interested Companies

With the Announcement of the Sale Project of the Potash Mining Rights in the Amazon Basin, Petrobras Aims to Attract Investors Interested in the Assets in This First Stage, to Then Follow with the Concession Process.

The oil and gas company Petrobras announced on the night of last Thursday (11/08), another advancement in its divestment plan of its assets in the country, with the initiation of the sale project of its rights to mining potash in the Amazon Basin region in the North of the country. The asset consists of 34 mining titles of potash salts and will be granted for exploration and research to the national private sector.

Potash Mining Rights in the Amazon Basin Region Will Be Sold by Petrobras to the Private Sector in State Divestment Project

The Brazilian mining market will now witness another sale project from the state-owned Petrobras, the concession process of potash mining rights in the Amazon Basin to the private sector over the coming months.

This is because the company announced the initial phase of the sale process, the disclosure of the opportunity to attract investors and companies interested in mining and mineral research in the North of the country.

There are 34 mining titles of potash salts that Petrobras holds in its asset in the Amazon Basin and, according to the company’s statement, all are currently granted by the National Mining Agency (ANM).

Among the mining operations of the product in the region, the company highlighted that eight are mining concessions, four are mining requests, and 22 are in process of research authorization, which can be acquired by the private sector in the state divestment project.

Furthermore, the document highlights that the potash mining area that will undergo the sale project includes the alignments of Fazendinha-Arari-RUT1 and Maués-Boa Vista dos Ramos, encompassing the cities of Nova Olinda, Autazes, Itacoatiara, Silves, Itapiranga, Maués, and Boa Vista dos Ramos, an essential region of the Amazon Basin for mineral exploration.

In this way, Petrobras takes advantage of the electoral race and the Federal Government’s privatization plan to continue the concessions of its assets in the sectors of mining, oil, and natural gas to the private sector.

Potassium Mineral Production Potential in the Amazon Basin Is Equivalent to ⅓ of Annual Consumption of the Mineral in Brazil, According to State Report

The document announcing the sale project of the potash mining assets in the Amazon Basin from Petrobras also included the main information about the asset in question. In addition to the eligibility criteria for selecting potential participants in the process. As the company invests now in the search for investors. Moreover, there was also a disclosure of the productive potential of the asset to make it more attractive.

According to Petrobras data, the potash mining asset in the North region of the country has a production potential equivalent to approximately 6% of current global production and more than one-third of Brazil’s annual potash consumption.

Potash is one of the main components of fertilizers used in the national agribusiness and, currently, the demand for the product has been growing more and more, making the investment in the mining of the resource highly sought after by companies.

“The conflict between Russia and Ukraine has reinforced the concern about the vulnerability of Brazil’s dependence on fertilizer imports and demonstrates the opportunities associated with local production,” the company emphasized in its statement, justifying the sale project of the potash mining asset in the North of the country.