Brazil sets new record for potash consumption

Brazil set a new record for potash consumption last year with an intake of 8.1 million tonnes, according to data released Monday by the country's national fertilizer association ANDA.

This is a a 9.3% increase year-over year and marks the second consecutive year in which Brazil was the largest potash importer in the world. During 2012, 7.5 million tonnes was imported.

The country's use is growing faster than other major consumer. However, it's domestic potash production has declined in recent years and this downward trend will continue. Brazil's only domestic operating mine is expected to run out of ore in 2016.

Verde Potash (TSX: NPK), a mineral exploration and fertilizer development company, is working on building a strip-mining operation — Cerrado Verde — in the western state of Minas Gerais. It is also developing a nearby companion limestone project, Calcario.

Currently, the company is in negotiations to sign off-take agreements with potential partners as well as waiting on the outcome of the permit process with the Brazilian government.

Image courtesy Verde Potash