Brazilian authorities approve Vale-Petrobras potash agreement

Brazil's antitrust authority Cade approved on Wednesday the agreement between mining giant Vale and state-owned oil and gas producer Petrobras on potash mining in Sergipe state in northeast Brazil. The partnership will involve an investment of around US$ 4 billion by Vale in potash production in an area where Petrobras has mineral rights and was approved without restrictions, a Cade spokesman said.

Vale announced in February it has signed a contract to lease from Petrobras for 30 years potash assets and mining rights at Taquari-Vassouras and Carnalita in Sergipe. The miner already produces around 600,000 tonnes of potash a year at Taquari-Vassouras, currently Brazil's only potash mine. The approved deal will allow a continuation of mining at the site and the development of the Carnalita mine project, which has potential to threefold Vale’s potash production in Brazil in a first stage.