supra48 wrote: The Santana project was part of my buying decision on Mbac ......and still is
Competitive Advantage
Brazil is currently dependent on the importation of fertilizers with approximately 67% of nutrients being imported. In addition, the continuous growth of agriculture (~5.0% pa) will increase the need for fertilizer imports, even when taking into account new fertilizer plants expected to start operating in the future.
Based on the crop outlook, Agroconsult is projecting an 80% increase in fertilizer demand through 2031, reaching 50.9 million tonnes. By 2016, average annual growth is estimated to be 3.4% and should be close to 2.8% in the following years. Both increases in area and more intensive usage, based on application of greater quantities of fertilizer per unit of area, are likely to drive this growth. Agroconsult estimates that fertilized area will rise from 84.2 million hectares (ha) to 93 million ha in 2016 and to 114.8 million ha in 2031 and average fertilizer use will increase from 337 kg/ha in 2011 to 361 in 2016 and 442 kg/ha in 2031.
Currently, there is no production of phosphate fertilizers in the Santana Project target area, resulting in phosphate fertilizers being imported from other domestic regions to the south or abroad. The main supply of the phosphate fertilizers consumed in the target region are from (i) Port of Itaqui (imported); (ii) Port of Santos (imported); (iii) Port of Paranagu (imported); and (iv) southern Minas Gerais and Gois states (domestic), where there are local producers.
The Santana Project has a significant competitive advantage resulting from its strategic location. The distance covered by products coming from the south-east region of Brazil (Port of Paranagu and Port of Santos) is approximately 2,000 km; approximately 1,000 km for those coming from Gois and Minas Gerais states and approximately 1,500 km for those coming from Itaqui Port. These large distances results in significant freight costs when compared to the distance for shipment of product from the Santana Project.
https://www.newswire.ca/news-releases/mbac-announces-results-of-feasibility-study-for-santana-phosphate-project-513112571.html