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Commodities

Unit of Australia's Aguia Resources gets final permit for Brazil mine

SAO PAULO (Reuters) -Aguia Fertilizantes, a unit of Australia’s Aguia Resources Limited, has been granted a final permit to build a phosphate mine in southern Brazil, a spokesperson told Reuters on Tuesday.

The company will invest 35 million reais ($6.82 million) to build the mine, a project that is expected to take 12 months. At maturity.

The mine will have capacity to produce 300,000 tonnes annually, according to the company estimates.

Momentum is building for this and similar fertilizer mining projects in Brazil after the federal government announced a plan to reduce the country’s dependence on imports.

Brazil’s government aims to slash overall fertilizer imports to 45% of total domestic consumption from the current 85% by 2050.

That is attracting companies like Aguia, and reviving interest in old projects, including in the Amazon, where permits may be harder to get.

Brazil’s phosphate consumption is 7-8 million tonnes per year, but the country imports 72% of demand from countries like Morocco and Jordan.

($1 = 5.1336 reais)

Reporting by Ana Mano

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