Brazil Potash Corp. has announced the award of a second Front-End Engineering Design (FEED) contract for its Autazes potash project in Amazonas State, Brazil. WSP UK Ltd. will lead the work on the mine shafts and underground development, with Redpath Deilmann Mining Inc. serving as subconsultant for the shaft scope.
#Contract covers underground development
The assignment includes the engineering work needed for the project’s underground components, including geotechnical investigations, freeze modelling, basis-of-design preparation and the regulatory groundwork for later FEED activity.
WSP UK Ltd. is expected to provide work covering geomechanical analysis, shaft liner design and structural assessments. WSP Brasil will support alignment with Brazilian regulatory requirements through a separate arrangement with WSP UK Ltd.
#Only Early Works phase awarded
The estimated total value of the FEED contract, subject to authorization of subsequent phases, is USD 26 million. Brazil Potash said only the first phase, known as Early Works, has been awarded at this stage.
Early Works spans 12 months and has a value of USD 4.3 million. The phase includes geotechnical investigation, freeze modelling, development of the design basis and the regulatory and engineering work required to progress toward full FEED execution. Further terms apply to the transaction.
#Second FEED package completes project-wide coverage
Brazil Potash previously awarded the Surface Facilities and Infrastructure FEED to Wood and Promon Engenharia. The company said the new award gives the Autazes Project engineering coverage for both its surface facilities and underground works.
The FEED documentation is intended to provide material for lender due diligence and support long-lead procurement. Brazil Potash said the completion of the studies is relevant to construction debt financing discussions that are ongoing with Development Finance Institutions and Export Credit Agencies. The announcement does not state that construction debt financing has been secured.
#Shafts identified as project critical path
The company describes the two mine shafts as central to the Autazes construction schedule. It said the processing plant, tailings facilities, logistics infrastructure and other underground development depend on the timely and safe completion of shaft sinking.
Redpath has participated in or delivered shaft sinking work on more than 500 shafts worldwide, according to Brazil Potash. Its experience cited in the announcement includes potash projects in Canada and elsewhere, using ground freezing, grouting, mechanized sinking and conventional sinking methods.
#Forward-looking statements and project risks
Brazil Potash said statements concerning the Autazes Project, financing discussions, the FEED programme, expected production, the capabilities of WSP and Redpath, greenhouse gas emissions reductions and government or environmental regulation are subject to risks and uncertainties.
The company cautioned that these statements speak only as of the date of the announcement and advised readers not to place undue reliance on them. The announcement does not provide further detail on the specific risk factors referenced.
#Key Takeaways
- Brazil Potash announced a second FEED contract for mine shafts and underground development at Autazes.
- WSP UK Ltd. is leading the contract, with Redpath Deilmann supporting the mine shaft scope and WSP Brasil assisting with Brazilian regulatory compliance.
- The estimated total contract value is USD 26 million, subject to authorization of subsequent phases.
- Only the 12-month Early Works phase, valued at USD 4.3 million, has been awarded so far.
- Brazil Potash said the FEED work is being used to support ongoing construction debt financing discussions with DFIs and ECAs.
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