A unit of Toronto-based miner Brazil Potash is working to keep a $2.5 billion potash project on schedule, as legal challenges are mounting to its plans for extracting the fertilizer ingredient from beneath the Amazon rainforest.
In an interview, Potassio do Brasil Chief Executive Adriano Espeschit described a protracted licensing process hinging on court-supervised talks with the Mura Indigenous people, who have the right to be consulted under an International Labor Organization convention.
The situation highlights risks associated with mining projects in the Amazon at a time when global potash prices have tumbled after steep rises last year. In court filings and public statements, prosecutors accused Potassio do Brasil of "intimidating" the Mura with its public promotion of the project in their community.
In February, however, a judge gave federal environmental agency IBAMA jurisdiction over the licensing process. An Ibama spokeswoman said the permitting process will not necessarily start from scratch, because some studies submitted to state authorities may be useful in the federal review.
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