As global hunger affects over 828 million people in 2023, the need for sustainable agricultural solutions is more pressing than ever.
According to the United Nations World Food Programme, nearly 10% of the global population faces food insecurity, worsened by climate change, conflict, and soaring food prices.
One company rising to the challenge is Brazil Potash, which recently completed a $30 million initial public offering (IPO) to advance its potash mining project in Brazil’s Amazon region.
“We’re directly supporting global food security by strengthening Brazil’s domestic fertilizer production capacity,” said Matt Simpson, CEO of Brazil Potash.
Brazil, the largest net exporter of agricultural products valued at $167 billion annually, depends on imports for 98% of its potash needs.
Simpson highlighted the importance of reducing this dependence, stating, “Our project will produce 2.4 million short tons of potash annually, about 17% of Brazil’s current demand, with plans to double capacity.”
Potash, a key fertilizer ingredient, plays a crucial role in combating hunger by improving crop yields.
“There’s a direct linear relationship between potash application and crop output,” Simpson explained.
He added that potash strengthens plant stems, making them more resilient to stressors like drought, extreme temperatures, and pests—factors exacerbated by climate change.
The company’s domestic production plans align with Brazil’s National Fertilizer Plan, which aims to cut import reliance from 85% to 45% by 2050.
Recent geopolitical tensions, including sanctions on Belarus in 2021 and the Russia-Ukraine war in 2022, revealed vulnerabilities in Brazil’s fertilizer supply chain.
“Potash prices quadrupled during these events, underscoring the need for a stable domestic supply,” Simpson said.
The $30 million raised from the IPO will fund critical pre-operation activities such as environmental licensing, land acquisition, and procurement for engineering needs.
Simpson emphasized the efficiency of local sourcing, stating, “We can deliver potash to Brazilian farmers within three days compared to over 100 days for imports.”
By eliminating up to 20,000 kilometers of shipping distance, Brazil Potash also reduces transportation costs and environmental impact by 71%.
Sustainability is a core aspect of the project, with operations located on deforested cattle farmland rather than primary rainforest.
“Our underground mining approach minimizes surface impact, and we use 80% renewable energy,” Simpson noted.
The company also employs environmentally friendly practices such as dry stacked tailings, which are backfilled underground, and avoids wet tailings impoundments.
Brazil Potash’s commitment extends beyond environmental stewardship, with significant investments in local communities.
“Our programs have over 90% support from indigenous communities,” Simpson shared.
These initiatives include social and cultural development for indigenous villages, healthcare and education support, and job creation, with the potential to generate 10,000 new roles.
“We’re also running before and after-school programs that currently serve more than 130 children,” he added.
Brazil Potash’s project is projected to cut 1.4 million tons of greenhouse gas emissions annually by eliminating long-distance shipping and leveraging Brazil’s renewable energy grid.
The company’s reliance on river barge transportation further reduces its carbon footprint.
“Our operations contribute to climate resilience by ensuring a reliable domestic fertilizer supply and using sustainable practices,” Simpson said.
Looking to the future, Brazil Potash aims to fortify the country’s agricultural independence while addressing global food security.
For more information, visit Brazil Potash or connect with Matt Simpson on LinkedIn.
