Brazil has moved to develop a large-scale potash mine in the Amazon rainforest. As the world's largest agricultural exporter, it is a strategic choice to produce potash, the main ingredient in fertilizer, domestically to reduce reliance on fertilizer imports. But controversy is growing amid concerns about environmental damage and encroachment on protected Indigenous areas.
According to the Wall Street Journal (WSJ) on the 5th local time, Brazil Potash, a mining development company headquartered in Toronto, Canada, has begun developing a potash mine 800 meters underground in the Autazes area near the Madeira River, a tributary of the Amazon River. The lode was discovered about 50 years ago during oil exploration by Petrobras, Brazil's state-owned oil company, and potash is estimated to be deposited along roughly 400 kilometers.
Brazil Potash is reportedly proceeding with construction with a target of commercial production in 2030. After completion, it plans to mine 2.4 million tons of potash annually, which is calculated to cover about 20% of Brazil's total potash demand. The mine life is estimated at 30 years, and the company is said to have invested $2.5 billion (about 3.62 trillion won) in the development.
Brazil, the largest exporter producing a variety of crops such as corn, soybeans, and sugarcane, has so far relied on external imports for 90% of the fertilizer needed for farming. But recently, fertilizer self-sufficiency has emerged as a key task for the Brazilian government because fertilizer prices surged after Russia restricted exports following its 2022 invasion of Ukraine. On top of that, U.S. President Donald Trump imposed a 50% tariff on Brazilian products, worsening the situation.
Brazil Potash says the project will improve the stability of fertilizer supply in Brazil and boost farmers' competitiveness. Rafael Bloise, head of Brazil operations at Brazil Potash, said, "The large deposits of potash in this area are a gift from God," adding, "They will contribute to national food security and agricultural self-reliance." The company is also considering developing a second mine in Fazenda region, where the Madeira and Amazon rivers meet.
Chinese corporations are also showing interest in the project. Brazil Potash plans to build infrastructure including a port terminal and a 160-kilometer transmission line, and there is talk of the possibility of signing a swap contract with China to exchange fertilizer and agricultural products.
However, the Autazes area borders an Indigenous protection zone, stirring controversy. Part of the planned mine site overlaps with the residence of the Mura people, and environmental groups warn that "even if mining is legal, road and port construction will fuel the spread of illegal logging and land encroachment." In response, Brazil Potash is working to calm the situation, saying, "We will strictly observe the Indigenous protection zone and proceed with development only from outside."
Some also offer an optimistic outlook that the development could help revitalize the underdeveloped Autazes area. Currently, Autazes has an estimated population of about 50,000 residents, most of whom rely on government-supported jobs or welfare programs.
Autazes Mayor José Tomé Neto said, "The mine appears poised to bring new opportunities to the local economy," adding, "This project will not only strengthen Brazil's food security but also reshape the very economic structure of the Amazon."