Yara, Bunge start Brazil phosphate mine venture
Wed May 18, 2005 03:09 AM ET
OSLO, May 18 (Reuters) - Norwegian fertilisers producer Yara has formed a 50/50 joint venture with U.S. agribusiness group Bunge for the possible development of a phosphate rock mine in southern Brazil, Yara said on Wednesday.
The partners will launch a feasibility study to evaluate developing the Anitapolis phosphate reserve, which is the only major, known reserve in Brazil not yet utilised, Yara International ASA said in a statement.
"A decision and possible construction start for Anitapolis is expected during first half of 2006 with possible production start by 2009," Yara said.
Yara obtained its interest in the reserve in 2000 when it bought Adubos Trevo in Brazil. White Plains, New York-based Bunge owns the other 50 percent.
"The potential development of the Anitapolis site will secure low cost supply of a critical raw material to Yara's fast-growing downstream business in Brazil," Yara said.
Brazil is the world's fourth largest consumer of fertilisers, and is expected to further strengthen its position as an exporter of crops such as soybeans, coffee, sugar and citrus fruit, the company said.
"Yara is through Adubos Trevo well positioned to take part in the continued growth within the Brasilian fertilizer market," Yara said.
Yara is the world's biggest supplier of nitrogen fertilisers
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