Brazil Potash Corp. (NYSE-American: GRO) has announced the appointment of WSP UK Ltd. for the second Front-End Engineering Design (FEED) stage of its Autazes Project in Amazonas, Brazil. The work will cover the mine shafts and underground development, with Redpath Deilmann acting as a specialist subconsultant for the shaft scope.
The announcement completes the company’s planned engineering coverage for the project after Wood and Promon Engenharia were appointed for the FEED work covering surface facilities and infrastructure. Brazil Potash said the engineering programme is intended to support ongoing construction-financing discussions with Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs).
#Initial FEED phase authorised
The total estimated value of the FEED contract is US$ 26 million, subject to authorisation of later stages. Brazil Potash said only the first phase, known as Initial Works, has been authorised at this point.
Initial Works is expected to run for 12 months and has a value of US$ 4.3 million. The phase includes geotechnical investigations, freezing-model development, preparation of design bases, and the regulatory and engineering groundwork required for the wider FEED programme.
#Mine shafts identified as the project’s critical path
Brazil Potash describes the two mine shafts as the critical path for the Autazes construction schedule. The company said the processing plant, tailings system, logistics arrangements and underground development depend on the safe and timely completion of the shafts.
Redpath’s role will include shaft excavation and constructability work. According to the announcement, Redpath has participated in more than 500 mine shafts worldwide and has experience with ground freezing, grouting, and mechanised and conventional shaft-construction methods.
#Roles of WSP UK and WSP Brasil
WSP UK Ltd. will provide the principal FEED engineering input, including geomechanical analysis, freezing models, shaft-lining design and structural assessments. WSP Brasil will support the project’s alignment with Brazilian regulatory requirements through an independent arrangement with WSP UK.
Brazil Potash said the companies were selected for their international experience with potash mine shafts, work in complex geotechnical conditions and ability to address Brazilian regulatory requirements. The release does not state that the full FEED contract has been authorised or completed.
#Financing discussions remain ongoing
The company said the FEED process is intended to convert preliminary project assumptions and studies into detailed engineering documents. Those documents are expected to support lender due diligence and provide a basis for bankability, investment readiness and long-lead procurement.
Discussions on construction financing with DFIs and ECAs are described as ongoing. The announcement does not state that construction financing has been agreed, secured or completed.
#Forward-looking statements and project risks
Brazil Potash said its forward-looking statements are subject to risks and uncertainties, many of which are outside the company’s control. The areas identified include the expected benefits of the Autazes Project, production volumes, potential engagement with DFIs and ECAs, the expected benefits and timetable of the FEED study, the anticipated capabilities of the Redpath and WSP team, greenhouse-gas emissions reductions, project status, and government and environmental regulation.
The company cautioned readers against placing undue reliance on these statements and said they reflect its position on the date of the announcement.
#Key Takeaways
- Brazil Potash announced WSP UK Ltd. for the second FEED stage covering the Autazes mine shafts and underground development.
- Redpath Deilmann will serve as a specialist subconsultant for the mine-shaft work.
- The total estimated FEED contract value is US$ 26 million, subject to authorisation of subsequent stages.
- Only the Initial Works phase has been authorised so far, with a planned duration of 12 months and a value of US$ 4.3 million.
- Construction-financing discussions with DFIs and ECAs remain ongoing, and the release identifies risks and uncertainties affecting forward-looking statements.
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