SAO PAULO, April 30 (Reuters) - The cost to produce

potash from a mine being developed in the Brazilian Amazon will

be similar to Russia's and lower than in No. 1 producer Canada,

said the CEO of Brazil Potash Corp, citing a third-party

assessment used in a company presentation.

The economics of the project -- which faced a protracted

licensing process involving multiple government agencies and

Indigenous consultations -- has drawn analysts' attention after

the price of potash fell sharply from highs above $1,000 per

metric ton amid the threat of sanctions against Russia and

Belarus in 2022, compared to the current level just above $300.

That, and new mining projects emerging in Canada and Laos,

would likely keep a lid on prices, they said.

"All in, our cost to mine, process and deliver the potash to

farmers in Mato Grosso state will be $130 per ton," CEO Matt

Simpson said in an interview on Monday, breaking down production

cost in Brazil at $80 per ton and transportation at $50 per ton.

According to a separate price assessment, Russia's

extraction cost is estimated at $50 and Canada's at $80, Simpson

said. That would make the company's Brazil potash less

competitive than Russia's and "in line" with Canada's, he

conceded.

Brazil relies on imports for nearly 100% of supplies, which

come from nations like Canada and Russia.

Simpson noted freight tied to potash imports alone was

higher than the total cost for the company, whose mine is

significantly closer to local farmers.

In a presentation sent to Reuters, the company's potash

price in Brazil was forecast to be $459 on a cost-and-freight

(CFR) basis, which seemed high to analysts who spoke to Reuters.

Simpson said that projection should be understood as an

average over the mine's life span, conservatively calculated at

23 years. He also cited 15 million tons of additional global

demand for potash in the next eight years.

"There's going to be a six-to-seven million ton shortfall in

new supply versus demand that is going to cause a structural

shift up of roughly $100 a ton," he said, predicting Brazil's

potash price could be $400 or $500 by 2032.

Brazil Potash aims to produce 2.4 million tons per year, a

fifth of national demand, and will target Mato Grosso farmers

primarily.

The company also hopes to make direct sales, eliminating

blenders, which Simpson said charge $50 to $70 premiums from

buyers.

Production at the Amazon mine, which has 4 of 11 required

licenses to complete construction, is scheduled to start in

2029, Simpson said.