Brazilian fertiliser company Brazil Potash has signed agreements with soybean producer Amaggi concerning production from Phase I of the Autazes mine in the Amazon rainforest.
The deals cover the purchase, sale and shipping of potash from Phase I of the Autazes mine, which is located 120km south-east of the state capital Manaus.
Under the offtake agreement with take-or-pay terms and conditions, Brazil Potash will supply 2.4 million tonnes of potash a year over a period of 15-17 years.
In addition, Amaggi’s logistics arm will have the rights to market Brazil Potash’s remaining 1.9 million tonnes of annual potash production from the mine to other potential buyers, as part of the marketing agreement.
Under the barge transportation agreement, Brazil Potash will deliver the initial planned production of 2.4 million tonnes of potash a year to inland ports located near major farming regions within Brazil.
Brazil Potash chairman Stan Bharti said: “It’s game-changing for Brazil Potash to sign binding contracts with Amaggi.
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“(Amaggi) is the ideal company for Brazil Potash to contract with as they consume a large amount of potash for application on their farmed land; they also have an extensive distribution and logistics network through their wholly owned subsidiary, Hermasa, which operates a barge-to-ocean vessel transshipment terminal only 40 miles upstream from our Autazes project.”
The Autazes project is planned to start production in 2026 and is expected to help reduce Brazilian farmers’ dependence on costly potash imports.
According to Reuters, the project is estimated to cost $2.4bn.
Amaggi shareholder Blairo Maggi said: “Brazil is a country rich in farming know-how with massive amounts of cultivated land, fresh water and an ideal temperature to allow for year-round growing.
“Having a large-scale domestic source of conventional potash – as proposed by Brazil Potash – is important to help ensure both Brazil’s and global food security.”