Yara announced that the divestment of the Salitre phosphate mining project in Brazil to Eurochem was successfully closed on 22 February 2022.

 

The company has received total proceeds of USD 452 million as part of the transaction.

 

Yara entered into the Salitre project in 2014, and its assets comprise phosphate mining operations, including tailing dam, with an annual production capacity of approximately 1,200 kt of phosphate rock and an on-going project to construct phosphate processing operations with a projected production capacity of approximately 1,000 kt per annum at completion. The estimated capital expenditure required to reach completion is of a similar magnitude to the divestment value.

 

However the project progress got impacted by Covid 19, and significant construction time and capital expenditure got too high for the company to hold on the project any longer. The Salitre divestment therefore supports Yara’s transformation by reallocating capital and risk appetite in the coming years towards Yara’s strategic focus areas.