Brazil Mining 2011 - GBR

BRAZIL MINING
AngloGold Ashanti’s Gold operations are set to grow significantly in Brazil. (Photo courtesy of AngloGold Ashanti)
Potassium and Phosphate
Potassium prices have more than doubled
in recent years, increasing from $144/mt in
2004 to $374/mt in 2010. Brazil occupies
seventh position in terms of total potassium
reserves with 284.7 million mt representing
1.6% of total global reserves. Brazilian
potassium production accounted for
approximately 500,000 mt in 2010, placing
the country in ninth position amongst
global producers.
Global prices of phosphate rock have
somewhat levelled out from peaks of
$192/mt in 2008, coming back down to
US$95/mt in 2010. Brazil’s 319 million
mt of phosphate rock reserves ranks the
country in 12 th position globally, accounting
for 0.6% of total reserves. Brazilian
phosphate rock production accounted for 6
million mt in 2010, positioning the country
in sixth position with 4.3% of overall
global output.
Brazil’s status as one of the world’s leading
agricultural producers of everything
from cattle to coffee, has positioned the
country as one of the key global swing markets
for fertilizers. Despite Brazil’s strength
in phosphate and potassium reserves, the
country still relies upon imports for fertilizer
inputs into the agricultural industries.
This reality has not been overlooked by
Vale. The company has made major strategic
inroads into the fertilizer industry during
2010 with acquisitions of major producers
Bunge and Fosfertil. The establishment of
Vale Fertlizantes has emphatically set out
the company’s strategic ambitions for diversification
into the growing strategic importance
of fertilizer producing raw materials
such as potassium and phosphates.
“Following the privatization of Vale in
1997, the company has had a specific policy
of diversification. Vale has been operat-
80 E&MJ • JANUARY/FEBRUARY 2011 www.e-mj.com