Paranafert plans to build US$550mn fertilizer factory in Paraná state

Brazilian firm Paranafert is planning to build a nitrogen fertilizer factory in Paraná state involving investment of 3bn reais (US$550mn) amid a proliferation of such projects in the country.

The factory to be installed in Sapopema city will have capacity of approximately 520,000t/y of urea, sufficient for 7% of domestic consumption. 

The initial schedule foresees the project obtaining all environmental licenses and other authorizations in approximately one year. After that, construction is expected to take two years.

“Paraná will have one of the largest nitrogen fertilizer factories in Brazil, in Sapopema, which represents a solution for the entire agribusiness chain, helping the state and the country to depend less on fertilizers that are produced in other countries, in addition to helping the development of Sapopema and neighboring municipalities," Paraná governor Carlos Roberto Massa Júnior said in a statement.

According to public records, Paranafert shareholders include local businessmen Jorge Nemr and Pedro Grunauer Kassab. 

In 2023, China National Chemical Engineering International Corporation and East China Engineering Science and Technology Co. signed a framework accord with Paranafert to develop a 300,000t/y ammonia plant.

Having high nitrogen content, urea is one of the essential nutrients for plant growth and widely used to increase agricultural productivity. The production of nitrogen fertilizer is made from the gasification of coal, which represents 25% of the production of this input worldwide. China, India and South Africa are among the countries that most use this technology.

Brazil, a global agriculture products powerhouse, is currently the world's largest importer of fertilizers, with around 86% of its needs met by other countries. 

Fertilizer projects 

Investment in fertilizer projects in Brazil is expected to reach US$5.58bn in 2024-28, up from US$5.22bn in 2023-27, according to estimates from mining association Ibram.

Currently, there are 22 projects in the BNamericas database for the production of minerals associated with fertilizers.

BNamericas takes a look at the three largest by capex. 

Potássio Autazes

Brazil’s Potash Group recently created an advisory board as it is trying to overcome challenges to advance its US$2.5bn potash project in Autazes, Amazonas state.

In June, the company announced that it received the construction license for a processing plant. Amazonas state licensing agency IPAAM has issued 12 permits for the project so far.

However, the federal public prosecutor's office filed a lawsuit in May requesting the suspension of the construction license for the sylvinite mine that was issued earlier this year. 

Terra Brasil

Terra Brasil has mineral resources exceeding 2Bt of kamafugite rock with significant levels of titanium, rare earth elements, phosphate and potassium, according to the database.

The project is in the Cerrado region in Patos de Minas and Presidente Olegário municipalities in Minas Gerais state. Capex is put at US$468mn.

Santa Quitéria

As of June, Brazil’s environmental regulator Ibama accepted the environmental impact study and environmental impact report presented by the owners of the 2.3bn-real Santa Quitéria project in Ceará state.

Santa Quitéria is owned by a consortium formed by state-run nuclear firm INB and fertilizer company Galvani and involves extracting uranium and phosphate from the Itataia deposit. 

The project now enters the review phase for a preliminary license, the first of three in the environmental licensing process, according to the mines and energy ministry. According to the BNamericas database, annual production capacity is planned to reach 240,000t of phosphate and 1,600t of uranium concentrate. 

The phosphate will go to Galvani for fertilizers and animal food production, while INB will use the uranium concentrate.