Brazilian regulator reviewing US$400mn phosphate, uranium project

A technical team from Brazilian environmental regulator Ibama conducted an environmental feasibility assessment of the 2.3bn-real (US$403mn) Santa Quitéria uranium and phosphate project in Ceará state.

The initiative, a joint venture between state-run nuclear company INB and fertilizer firm Galvani, aims to extract uranium and phosphate from the Itataia deposit in the northeastern state. 

In June, Ibama accepted the project's environmental impact study and report, and it is now reviewing a preliminary license, the first of three required for environmental approval.

“To provide a more robust basis for the environmental studies presented for the proposed operation of the Santa Quitéria project, the Ibama team conducted an inspection to assess potential significant impacts in the region,” the regulator said in a statement. 

“Given the nature of the project, continuous oversight will be essential, including public hearings and careful review of all submitted information. For environmental and public safety, the institute, through its licensing department (Dilic), establishes control and compensation measures for approved projects,” it added.

This project is considered a strategic priority for Brazil. According to the BNamericas database, Santa Quitéria aims for an annual production capacity of 240,000t of phosphate and 1,600t of uranium concentrate. 

Galvani will utilize the phosphate for fertilizer and animal feed production, while INB will process the uranium concentrate.

"We likely see a series of mining projects associated with fertilizer production gaining scale in Brazil. The country is one of the world’s largest agricultural producers, however, due to extensive areas where the soil is not very fertile, it is essential to use fertilizers and the country is consequently heavily dependent on imports of fertilizers and raw materials needed for production of fertilizers," Manuel Fernandes, partner and head of KPMG's energy and natural resources sector in Brazil and South America, told BNamericas.

To reduce this dependency, Brazil's congress is working to pass legislation that encourages investment in fertilizer-related projects. "A top priority in congress is passing Profert, a bill offering incentives to the fertilizer industry," said Arnaldo Jardim, a Cidadania party lawmaker and head of the lower house’s special commission on the energy transition and green hydrogen production. 

"The bill aims to reduce Brazil’s reliance on imports by fostering renewable energy use, green ammonia development and nitrogen fertilizer production,” he added.

The Profert bill, currently under congressional review, would provide tax benefits to establish a domestic fertilizer supply chain. Investment in Brazil’s fertilizer sector is projected to reach US$5.58bn in 2024-28, up from US$5.22bn in 2023-27, according to mining association Ibram.