“The Serra do Salitre Mining and Industrial Complex will add 1 million tonnes of phosphate fertilizers per year to EuroChem’s production and distribution…”
Gustavo Horbach is the director-president of EuroChem for Latin America, CEO and board member of Fertilizantes Heringer. Horbach has a degree in civil engineering from Pontifical Catholic University of the State of Rio Grande do Sul, a postgraduate degree in engineering and a M.Sc. from the Federal University of the State of Rio Grande do Sul.
Gustavo Horbach, director-president of EuroChem for Latin America
AgriBrasilis – Will the industrial complex of Serra do Salitre, in the State of Minas Gerais, make it possible to reduce dependence on fertilizer imports? At what magnitude?
Gustavo Horbach – Yes. The Serra do Salitre Mining and Industrial Complex will add 1 million tonnes of phosphate fertilizers per year to EuroChem’s production and distribution. This amount represents 15% of the national production of the input. In line with the National Fertilizer Plan, the new production plant strengthens the competitiveness of Brazilian agribusiness and reaffirms the company’s commitment to the country.
AgriBrasilis – What has been the investment so far and what is the estimated production?
Gustavo Horbach – The total investment of the project is US$ 1 billion (acquisition of the asset and conclusion of the project).
The main production data are:
- 2 million tonnes/year of phosphate concentrate;
- 1 million tonnes/year of phosphate fertilizers;
- 1 million tonnes/year of sulfuric acid;
- 250 thousand tonnes/year of phosphoric acid.
AgriBrasilis – What motivated the choice of Serra do Salitre for phosphate production?
Gustavo Horbach – The EuroChem Group is vertically integrated with activities covering mining, production, logistics and distribution of fertilizers. In South America, we operate in blending and distribution.
Salitre is our first mining unit outside Europe. With its conclusion, we have become a player in the production of fertilizers in the South American continent, consolidating our vocation to operate from mine to table [encompassing the whole production chain] in this region that is so relevant to the segment.
“In line with the National Fertilizer Plan, the new production plant strengthens the competitiveness of Brazilian agribusiness and reaffirms the company’s commitment to the country”
AgriBrasilis – How to ensure environmental sustainability in a project of this size? How will the reuse of waste from fertilizer production be carried out?
Gustavo Horbach – Many of Salitre’s operational/technological aspects contribute to materializing our sustainability strategy. In the industrial plant, for example, the concept is that it is a closed-circuit site: nothing leaves the unit.
The mineral area has an integrated circuit with the tailings dam. The water we use comes from this dam, we circulate it in the plant and go back to it. In the case of the chemical plant, the same phenomenon occurs, but divided into five ponds, separated according to the nature of the effluent. For example, rainwater from the chemical plant goes into a pond, the effluent from the gypsum yard, generated in the production of phosphoric, is directed to another pond. This material is directed to an effluent treatment plant, where it is neutralized with lime, generating process water, which returns to the chemical plants for use in gas scrubbers. On the other hand, the sedimented material generated with the use of lime is sold in the market for agriculture, as it has phosphate.
There is also a water treatment plant in the complex, which is captured in the region for use in the noble circuits of chemical plants. We treat and use part of this water to generate steam and feed the phosphoric acid concentration and the sulfuric acid circuit.
Salitre is an example of a circular economy. In the chemical plant, we consider a complete circular economy. The plant’s vocation is to produce phosphate fertilizers, but we generate co-products of gypsum, sedimented material, sulfur sludge as co-products, which are saleable in the market.
AgriBrasilis – Was the purchase of Heringer Fertilizers a good investment?
Gustavo Horbach – The acquisition of indirect controlling interest in Fertilizantes Heringer was important in our growth journey. The strategy reinforces our commitment to Brazilian agribusiness, strengthens our distribution capacity and helps us achieve our goals for South America.
For more than 50 years in the market, with 14 storage, mixing and distribution units in the southeast, midwest, south and northeast regions, Fertilizantes Heringer is the fourth largest distributor in Brazil in terms of installed capacity, with more than 4 million tonnes per year. Heringer further strengthens our business relationships, as we serve the entire Brazilian market in a more robust and reliable way – from north to south.
AgriBrasilis – How to compete in the market with Mosaic and Yara in Brazil?
Gustavo Horbach – We are all imbued with the same purpose, which is to contribute to food security and the development of the local market. The strategies of each player contribute to the strengthening of Brazilian agribusiness, which represents a significant portion of our GDP. We discuss together, through collegiate forums led by the trade associations that represent the sector, the issues common to the market.
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