Partnerships

Brazil Potash Signs MOU with Keytrade AG for Potash Offtake Agreement

Brazil Potash signed an MOU with Keytrade AG for the potential offtake of up to 1M tons of potash annually from the Autazes Potash Project.
Image provided by Brazil Potash.

Key Takeaways:

  • MOU Signed: Brazil Potash Corp. has signed a memorandum of understanding (MOU) with Keytrade AG for the potential offtake of up to one million tons of potash annually from the Autazes Potash Project.
  • Strategic Position: The agreement reinforces the company’s position as a key domestic potash supplier in Brazil.
  • Existing Commitments: Combined with an existing agreement with AMAGGI, the company has secured commitments for approximately 1.5 million tons of its planned 2.4 million tons of annual production.
  • Project Financing: The MOU strengthens the foundational support needed for project financing.
  • Major Milestone: The Autazes Potash Project is set to become the largest potash fertilizer project in Brazil, addressing the country’s dependency on imports.

What Is the MOU Between The Companies?

Brazil Potash Corp. (Profile), through its subsidiary Potássio do Brasil Ltda., has entered into an MOU with Keytrade AG, one of the world’s leading fertilizer trading companies. Under the agreement, Keytrade may offtake up to one million tons of potash annually from the Autazes Potash Project, which is currently under development.

“This MOU with Keytrade represents another important step towards Brazil Potash’s development and validates our strategic position in Brazil as a potential premier domestic potash supplier,” said Adriano Espeschit, President of Potassio do Brasil.


How Does This Agreement Fit Into The Company’s Strategy?

The MOU with Keytrade builds on the company’s strategy to secure offtake commitments for its planned production capacity. Key highlights include:

  • Diversified Partnerships: The agreement complements an existing offtake agreement with AMAGGI, Brazil’s leading agricultural company.
  • Commitments Secured: The company has now secured commitments for 1.5 million tons of its planned 2.4 million tons of annual production.
  • Support for Financing: The agreements provide a strong foundation for project financing and further project development.

What Is the Significance of the Autazes Potash Project?

The Autazes Potash Project is poised to become Brazil’s largest potash fertilizer project. Key benefits include:

  • Reducing Dependency: Brazil currently imports the majority of its potash needs. This project will help reduce the country’s reliance on imports.
  • Sustainable Agriculture: Increased domestic potash production will support Brazil’s agricultural sector by ensuring a stable supply of this critical nutrient.
  • Economic Impact: The project is expected to contribute significantly to the local economy, creating jobs and fostering regional development.

What’s Next for Brazil Potash?

“Combined with our existing offtake agreement with AMAGGI, we have now secured potential commitments for approximately 1.5 million tons of our planned 2.4 million tons of annual potash production, providing strong foundational support for project financing,” Espeschit added.

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