Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Australian junior Elemental Minerals (ASX, TSX: ELM), which is developing a potash project in the Republic of Congo, announced it has increased measured and indicated resources at its Kola deposit by 265% to just under one billion tons.
Nothing but good news for Congo, which may have a potash mine with an annual capacity of 2 million tonnes a year in production by as early as 2015, according to Elemental.
The Sintoukola project, which Kola forms part of, will ramp up to full capacity by 2017, at a capital cost of around $1.7 billion, added the company.
One of the main markets the company has its eyes on is Brazil, the third largest potash consumer, which imports 90% of its crop nutrient requirements.
Shipping the key ingredient for making fertilizer to Brazil from the Kola deposit, located near Congo’s coast, seems right from both a business and a logistical perspective.
First, the distance between Congo’s capital, Pointe Noire, and the port of Santos in Brazil, is nearly half that of other major potash producing regions, including Russia, Canada and the Middle East.
Second, Elemental says Brazilian potash imports are expected to jump sharply from 6 million tonnes in 2010 to 12.2 million tonnes in 2025. This is because the South American country uses potash not only for agricultural purposes, but also for its ethanol industry as demand for biofuels globally increases.
The challenge for Elemental, according to The Australian, is that Brazil has traditionally relied exclusively on the spot market for potash supply, buying cargoes on a free-on-board basis for shipping home, rather than off take deals.
The Republic of Congo (not to be confused with the Democratic Republic of Congo, located in east-central Africa) is the fifth-largest oil producer in sub-Saharan Africa. According to Elemental Resources’ website, in recent years mining has emerged as a high-growth industry, fostered by a new government mining code that makes the country one of the most mining-friendly jurisdictions in Africa.
Late in April, the biggest producer, Canadian Potash Corp (TSX:POT), said it expected considerably improved global demand for potash this year, of roughly 53–56 million tonnes, while it anticipated its sales volumes for 2012 to be in the range of 8.8–9.2 million tonnes.
