Phosphates in South América: An Overview

By

F. L. (Tino) Prado, P.E., and Megan E. RossPrado Technology Corp. Consulting Chemical Engineers Tampa FloridaEngineers, Tampa, Florida

American Institute of Chemical EngineersAmerican Institute of Chemical Engineers Central Florida Section, Annual MeetingClearwater, Florida, 12 June 2010, ,

AbstractAbstract

The phosphate industry as we know it todaystarted in the United States about one hundredyears ago in places like Tennessee, but latershifted to Florida, North Carolina and Idaho. In,the meantime, major phosphate rock depositshave been found in Africa. Smaller deposits havepalso been found in South America, promoting thedevelopment of the industry in that continent.p yThis paper will review the latest developments.

OverviewOverview• Global phosphate reserves by country• South American phosphate reserves

– Percentage by country

• Brasil– Phosphate Deposits

Fosfertil Company Profile– Fosfertil Company Profile– Factors influencing fertilizer demand

• Perú– Bayóvar phosphate deposit & mining project– Quimpac & DCP production

• Venezuela– Phosphate reserves

Pl f i d l t– Plans for mine development

• Colombia– Phosphate deposits– Abocol Company ProfileAbocol Company Profile

Global Phosphate Reserves &Global Phosphate Reserves & Production

• South America– Estimated 1 billion metric tons phosphate reserves– Accounts for 2 % of total world reserves

South American Phosphate Rock Reserves

Percentage Phosphate Deposits in South America by Country

(%)• Colombia – 346 million

metric tones

Brazil 31%

Colombia35%

( )metric tones• Brasil – 319 million m. tons• Perú – 247 million m. tons

Perú24%

35%• Venezuela – 105 million

metric tones

Venezuela10%

BrasilIncreasing Fertilizer Production

Total NPK ProductionTotal NPK Production Brasil

(103 metric tons)

• 1970 – 35,300 tonnes total NPK• 2007 – 3.26 million tonnes total

NPK• Brazil’s total NPK production is

93 times what it was in 1970

Sources: IFA, US Library of Congress

BrasilIncreasing Fertilizer Demand

• Alternative fuel productionAlternative fuel production– Began in the 1970’s– Sugarcane for Ethanol– 37.7% of the world’s ethanol

comes from Brasil

• Currently 90% of all vehicles in• Currently 90% of all vehicles in Brazil are flex fuel

• Population Growth– 1970 to 2009

• 113% increase

Sources: IFA, US Library of Congress

BrasilFosfertil Mines

• Fertilizantes Fosfatados S.A. Fosfertil

– Headquarters- Sao Paulo, Brazil

• Catalão, Tapira & Patos de Minas

– Total production capacity of the three mines is about 3 4the three mines is about 3.4 million mt/y

– Total reserves are estimated at 1.19 billion mtCatalão Patos de Minos

– 8.4% P2O5

• Patrocínio– Under development

E i d C i

Patrocínio TapiraFosfertil Headquarters

– Estimated Capacity• 2 million mt/year

phosphate rock Source: E&MJ

BrasilFosfertil Phosphate Chemical Complexes

• Catalão, Uberaba,Catalão, Uberaba, Piacaguera– Products

Ph h i A id• Phosphoric Acid• DAP• MAP

T i l S h h t• Triple Superphosphate• Simple Superphosphate• Ammoniated Simple

SuperphosphateCatalão

Superphosphate– Marine Terminal

• CubatãoImport Ammonia

Uberaba

PiacagueraCubatão

– Import Ammonia– Shipping products

Source: Fosfertil

PerúPhosphate Deposits

• Bayóvar• Bayóvar– Located in Piura, Sechura

desertO f h 10 l– One of the top 10 largest phosphate deposits in the world247 illi 100

BAYOVAR

– 247 million tonnes, 100 million tonnes concentrated

– 27 year estimated life– 9-10% P2O5

Source: Mosaic

Bayóvar Mining Project• Vale is Second largest mining company in the

world• Headquartered in Rio de Janeiro, BrasilHeadquartered in Rio de Janeiro, Brasil• Vale to construct Bayóvar mine initiating late

2010

• Capacity 3.9 million tons phosphate rock concentrate per year

• 30% P2O5• Mosaic entered into an agreement with Vale and g

Mitsui for right to purchase 35% of the rock.

Source: Vale

PerúPhosphate Production

• Quimpac, S.A.– DCP-100,000 tons/year y– Plant located in Callao, Perú– Product used mostly as animal

feed supplementfeed supplement– Currently using imported

Moroccan rock Will use Bayóvar rock when– Will use Bayóvar rock when available, most likely after 2011.

VenezuelaPhosphate Deposits

• Monte-Fresco– 45 million metric tons

• Navay Zone50 million metric tons– 50 million metric tons

• Located in Táchira• The 2 deposits are 80

Monte Fresco

Navay pkilometers apart, separated by the AndesP i é & F f t D l

Navay

• Pequivén & Fosfatos Del Suroeste– Venezuelan government run

fertilizer companiesSource: Feasibility Study, Mitsubishi Venezolana & Naigai Consultant Co.

VenezuelaFosfatos del Suroeste

Feasibility Study- January 1990• Feasibility Study

– January 1990y y y y– Purpose- the

Venezuelan government striving g gfor rapid industrialization

– Total proven deposits-p p105 million m. tons

– Total potential deposits- 1947 million

Source: Feasibility Study, Mitsubishi Venezolana & Naigai Consultant Co.

metric tons

ColombiaPhosphate Reserves

S t d• Santander– 32.7 million metric tons

• Norte de SantanderNorte de Santander Norte de Santander

– 45.1 million metric tons

• BoyacáSantander

– 140.6 million metric tonsBoyacá

ColombiaAbocol

• Abocol, Cartagena• Founded by EXXON inFounded by EXXON in

1960 –• 300,000 tons NPK/year• Fosfatos de Boyacá

– Small single superphosphate producer for local pconsumption

• Phosphoric acid plant in planning stageplanning stage

Million metric tons/year P2O5