• Published on 7 September 2023
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Ethos Asset Management closes $50M financing deal for greenfield potash mine in Thailand

Ethos Asset Management (Ethos) announced a new long-term financing partnership with Thai-Sing Potash Trading Pte. Ltd, (Singapore), with a $50 million capital infusion that is expected to extend over multiple years and potentially reach up to $ 1 billion.

The partnership will enable a mine to be developed within three years, supplying potash to Thailand. The remaining volume will be exported to fertilizer producers and traders worldwide.

Thailand is recognised as one of the top importers of fertilizer globally. The country sources about five million tonnes of fertilizer each year from Asia and Europe, particularly Belarus and Russia. Notably, the war in Ukraine has significantly impacted its supply, especially from these two countries. Despite the substantial demand, Thailand can only meet a small percentage of its domestic requirement. The development of a potash mine has the potential to substantially reduce the nation's present dependence on imported fertilizers, while also possibly creating extra revenue through surplus quantities. Additionally, the project will enhance local employment opportunities by providing relevant job training to curtail the flow of workers in rural areas migrating to find work.

Carlos Santos, president and CEO of Ethos,  stated: “This is a very special, important and ambitious mining and natural resources project for Thailand, and the potash mining sector, its people and their community. In addition to its clear economic value, the project will provide noteworthy social benefits to the community within and surrounding the mining area. Environmental benefits include reforestation to expand the surrounding green zone, providing protection for local water resources, and improving local infrastructure through road improvements.”

The project realisation will involve two key entities – TSPT and APPC. TSPT will obtain financing from Ethos, supported by product off-take agreements from both end-users and global trading companies. APPC, the project developer under a concession from the Thai government, will hire Italian-Thai Development (ITD) to be the EPC contractor whose works will be funded by product sales to TSPT.

“The respect for the communities involved is mandatory for the success of this project and APPC is best suited to work with the local communities. We would like to thank and pay tribute to Jose Fonseca, director of TSPT, who worked closely with us diligently and is fully committed to make this deal happen. We also would like to thank Pom Vattasingh, director of TSPT, who steered the planning and financial structuring carefully and smoothly enabling us to reach this great moment," Santos added.

Jose Fonseca, director TSPT, stated that, “Emerging economies and industrialised countries alike share a need to produce more fertilizer to optimise agriculture output.  The APPC mine will help to meet this need in Southeast Asia and beyond, and in the process help to strengthen a developing regional economy.  

Pom Vattasingh, director of TSPT, stated that, “This project owes a great deal to the ingenuity of Carlos Santos, who personally helped structure the transaction to meet the financing requirements of both APPC and ITD, the project owner.  The resulting structure assures funding for a project which will have a positive impact on the project community, the Thai agricultural sector and the economy as a whole.   

Re-disseminated by The Asian Banker