But to grow that food, Brazil depends on other nations for its most essential fertilizer — a mineral called potash.

In fact, Brazil imports about 98% of this critical nutrient from tens of thousands of miles away.

When the USA sanctioned Belarus in 2021 followed by Russia invading Ukraine in 2022, however, it exposed how fragile this supply chain really is.

Since Russia and Belarus control over 40% of the world’s potash supply, prices for fertilizer quadrupled almost overnight when the conflict began. 

One solution may lie in an ancient ocean in Brazil’s state of Amazonas.

As the waters of the failed ocean receded, they left behind vast deposits of salt. 

As a result, one of the world’s largest deposits may sit right in Brazil’s backyard.

Brazil Potash, a Canadian-incorporated mining company, is working to develop this massive basin — one which could change how the world’s largest food producer gets its most essential fertilizer.

A Basin Hiding in Plain Sight

The large deposit was first discovered back in the 1980s by Brazil’s state oil company, Petrobras.

While they were drilling for oil at that time, what they found instead was a basin potentially stretching 250 miles long by 93 miles wide containing vast deposits of potash.

A potash basin in Saskatchewan, Canada currently supplying a substantial portion of global potash today is currently being processed by several of the world’s largest resource companies like Nutrien, the Mosaic Company, and very soon BHP.

The basin in the state of Amazonas, on the other hand, is an untapped resource that’s been almost completely overlooked to date.

The location of the deposit also offers a rare combination of advantages.

The project sits just 5 miles from the Madeira River, a major transportation artery. 

That would help Brazil Potash solve one of the biggest challenges in delivering fertilizer — getting the product to farmers both quickly and cost-effectively.

It’s also approximately 100 miles southeast of the city of Manaus, a manufacturing hub of 1.7 million people. That means access to a skilled workforce and modern facilities.

The processing of the fertilizer is remarkably simple. It uses only hot water to separate the potash — no chemicals are required. 

Large sections of the processing plant can be built in Manaus’s climate-controlled warehouses and then moved by river barge to the site.

This prime location also means Brazil Potash can connect directly to the same transportation networks already used by major Brazilian farming companies.

Instead of waiting over 100-plus days for shipments from overseas suppliers, Brazil Potash’s management believes that farmers could receive their fertilizer in just 3 days.

When Markets Shifted Overnight

When the USA sanctioned Belarus in 2021, followed by Russia’s invasion of Ukraine in 2022, potash prices jumped from $300 to nearly $1,200 per ton almost overnight.

The impact reached far beyond fertilizer markets though. Rising fertilizer costs meant higher food prices worldwide, from wheat in Europe to soybeans in Asia.

For Brazil, the stakes were particularly high. Their farmers consume over 20% of the world’s potash, and their demand is growing much faster than the global average.

These farmers depend on suppliers from tens of thousands of miles away — mainly Russia, Belarus, and Canada — for approximately 98% of their potash.

Brazil’s government saw the warning signs. In 2022, they launched their National Fertilizer Plan with a clear goal: cut import dependence nearly in half by 2050.

Brazil Potash could play a key role in the shift. With production happening in Brazil, their projected cost to produce and deliver potash will be lower than the transportation cost alone for imported potash from competitors overseas. 

Source: Brazil Potash Prospectus 

This cost advantage doesn’t come from special technology or higher-grade deposits though.

It comes from simple geography – controlling this massive potash deposit located directly where the farmers need it most.

Beyond the First Discovery

While the basin’s location creates some obvious advantages, the sheer size of the basin could be even more important.

Brazil Potash expects production of the project to reach around 2.4 million tons of muriate of potash annually — enough to supply nearly 20% of Brazil’s current needs.

Estimates project that they could continue at that rate for up to 23 years or even potentially longer. 

But that’s just the beginning of what this basin could deliver. If all goes to plan, the company could potentially expand to two more deposits directly adjacent to them.

Major players are already taking notice.

Franco-Nevada Corporation, one of the world’s most successful mining investment companies, has signed on as a cornerstone investor.

The Amaggi Group, one of the world’s largest private soybean producers with nearly $10 billion in annual revenue, has committed to a major offtake agreement.

The economics make it clear why these sophisticated players are getting involved.

The infrastructure is already in place to expand production significantly.

And with Brazil’s potash consumption projected to grow much faster than the global rate each year, the potential could be crucial for Brazil’s growing needs.

World-Class Mining with Local Leadership

With so much potential at play, Brazil Potash has brought on a world-class team to bring their plan to fruition.

Mayo Schmidt, who helped build Nutrien into the world’s largest potash producer with approximately $23 billion market cap, has agreed to chair Brazil Potash’s advisory board.

He’s joined by the former Attorney General of Brazil, the former Minister of Agriculture, and the former Senator of the largest farming region in Brazil among others.

The project has received a rare “Project of National Importance” designation from the government, while also gaining over 90% support from local indigenous communities.

Now, after years of preparation, Brazil Potash is ready to bring this asset into production.

The Path Forward

As global supply chains continue to shift, Brazil Potash stands at a pivotal moment.

• The Amazonas project has received all major permits to begin construction.
• They’ve already secured major offtake and transportation agreements with some of the biggest names in the industry.
• Plus, with multiple development catalysts on the near horizon, the project is projected to move toward production quickly.

The company’s agreements with major players like Franco-Nevada and Amaggi have already signaled what industry leaders are seeing in this property.

The timing couldn’t be more critical. The world needs 45% more food production by 2050 to feed a growing population.

Brazil, with its year-round growing season and abundant water, is uniquely positioned to help meet this challenge.

That’s why Brazil’s government has made domestic potash production a national priority, and why this ancient ocean basin could be key to feeding a growing world.

By. Stacy Graham

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Germanium and Gallium are vital metals with multiple industrial applications.

GERMANIUM

Germanium has several industrial applications due to its unique properties. Here are some of the key industrial applications for germanium: 

1. Semiconductors: Germanium was one of the earliest materials used in semiconductor technology. Although it has been largely replaced by silicon, germanium is still used in some specialized applications, such as high-speed transistors, infrared detectors, and optoelectronic devices.
    
2. Fiber Optics: Germanium is used as a dopant in optical fibers to increase their refractive index, enabling the efficient transmission of signals over long distances. It is also utilized in the production of fiber optic connectors and amplifiers.
    
3. Infrared Optics: Germanium has excellent transmission properties in the infrared range, making it suitable for the production of lenses and windows for infrared spectroscopy, thermal imaging systems, and infrared cameras.
   
4.  Solar Cells: Germanium is used in the production of multi-junction solar cells, which are employed in space applications and high-efficiency photovoltaic systems. Germanium-based solar cells can efficiently convert a broader spectrum of light into electricity.

China is the world’s largest supplier of Germanium. Other major suppliers are Russia, Canada, Belgium and the United States. 

GALLIUM

Gallium is a chemical element with the symbol Ga and atomic number 31. It is a soft, silvery metal and belongs to the group of post-transition metals. Gallium has similarities to aluminum, and it shares some properties with other elements in its group, such as indium and thallium. 

Gallium is not found in its elemental form in nature but is rather obtained as a byproduct of aluminum and zinc ore processing. It is present in trace amounts in various minerals, such as bauxite, sphalerite, and germanite. 

Here are some key characteristics and applications of gallium: 

1. Low Melting Point: Gallium has a relatively low melting point, around 29.7 degrees Celsius (85.5 degrees Fahrenheit), which is just above room temperature. This low melting point makes gallium a unique material with interesting applications.
    
2. Thermometers: Due to its low melting point, gallium is used in some thermometers, particularly those designed for high-temperature measurements.
    
3. Alloys: Gallium is often used as an alloying element with other metals. For example, it forms alloys with indium and tin that have lower melting points than individual metals. These alloys find applications in various fields, such as solders, semiconductors, and electrical contacts.
    
4. Semiconductors: Gallium has semiconductor properties, and it is commonly used in the production of electronic components like transistors, diodes, and integrated circuits. Gallium-based semiconductors, such as gallium arsenide (GaAs) and gallium nitride (GaN), exhibit high electron mobility and are employed in high-frequency devices, LEDs, lasers, and power electronics.
    
5. Liquid Metal: Gallium has the unique property of being a liquid at or near room temperature. It is often referred to as a “liquid metal.” This property finds applications in heat transfer systems, as a cooling agent for electronic devices, and in certain scientific experiments.
    
6. Nuclear Medicine: Gallium-67, a radioactive isotope of gallium, is used in nuclear medicine for diagnostic imaging, particularly in the detection of tumors and inflammation. It accumulates in areas of active cell growth, aiding in the identification of cancerous cells or sites of infection.

Gallium exhibits interesting properties and finds use in various fields, particularly in electronics and as a component in specialized alloys. Its low melting point and unique characteristics make it valuable for specific applications in industry and research.

Mining Spotlight for Germanium

Ivanhoe Mines, Ltd. (IVPAF) is a Canadian Copper mining company that also mines Germanium. Over the past 12 months, IVPAF has run up from $5.00 per share to $9.34 dollars today, nearing recent highs.

Gallium Mining Stock Spotlight

Lam Research Corporation (LRCX) has made an impressive run-up in 2023 from $400 per share to today’s price of $650.

Stay tuned to Global Investment Daily as we monitor stocks in the mining industry.

The post Spotlight on Germanium and Gallium Mining appeared first on Global Investment Daily.

Traditionally, global copper mining has been dominated by Chile, Peru, China, the United States and Australia. 

According to a recent article published by Reuters, Argentina has a pipeline of copper mining projects that could yield 793,000 tons of copper by 2030, which would solidly place Argentina within the top 10 global suppliers of copper. These projects are luring major mining corporations, including Glencore and Lundin.

In a country embroiled in economic crisis with inflation raging over 100%, investments in copper and lithium production are viewed as vital mechanisms to turn the economy around.

Image source: Reuters

As old infrastructure is replaced and new projects are in the works there will likelty be multiple uses for copper, including:

1. Electrical Wiring: Copper is an ideal material for electrical wiring due to its high electrical conductivity. It is used extensively in power transmission and distribution systems, as well as in residential, commercial, and industrial buildings. Copper wiring ensures efficient electricity flow and helps minimize power loss.
    
2. Plumbing and Pipelines: Copper pipes are commonly used for plumbing systems in buildings. Copper’s corrosion resistance, durability, and antimicrobial properties make it suitable for transporting water and other fluids. Copper pipes are also used for gas distribution and HVAC (Heating, Ventilation, and Air Conditioning) systems.
    
3. Telecommunications: Copper plays a crucial role in telecommunications infrastructure. It is used in the installation of telephone lines, internet cables, and other data transmission systems. Copper wires facilitate reliable and high-speed data transfer over long distances.
    
4. Structural Applications: Copper is used in various structural components in infrastructure projects. It is often employed in roofing materials, gutters, and downspouts due to its weather resistance and aesthetic appeal. Copper alloys are also used in architectural elements, such as doors, windows, and decorative facades.
    
5. Transportation Systems: Copper is utilized in the construction and maintenance of transportation infrastructure. It is used in railway networks for overhead electrification systems, power distribution, and signaling. Copper is also found in traffic lights, street lighting systems, and wiring within vehicles.
    
6. Renewable Energy Systems: Copper is an integral component in renewable energy infrastructure, including solar and wind power systems. It is used in photovoltaic cells, wind turbine generators, and electrical connections. Copper’s high conductivity and durability make it suitable for handling the generated energy efficiently.
    
7. Grounding and Lightning Protection: Copper is employed in grounding systems to ensure electrical safety. It helps divert excess electrical energy and prevents damage to equipment and structures. Copper grounding conductors are also used in lightning protection systems to safely conduct lightning strikes away from buildings. 

These are just a few examples of how copper is used in infrastructure projects. Its exceptional electrical and thermal conductivity, corrosion resistance, durability, and antimicrobial properties make it a preferred choice in various construction and engineering applications.

We will provide updates on copper mining and producers in future updates.

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