Brazil Potash and Amaggi sign agreements on potassium chloride

The companies Brazil Potash and Amaggi Exportação e Importação, together with their logistics subsidiary Hermasa Navegação da Amazônia, signed agreements to facilitate the commercialization and transportation of Potassium Chloride produced by Potássio do Brasil, controlled by Brazil Potash, in the municipality of Autazes ( AM), 112 km from Manaus.

In total, three commercial contracts were signed. The first of these was a Guaranteed Minimum Purchase Agreement, with terms and conditions for the sale of 500 thousand tons of potash per year. The second contract involves the sale of the remainder of production, of around 1,9 million tons of potash per year. The third and final agreement refers to the transportation by barge of the sum of this production, totaling 2,4 million tons of potash per year, over a period of 15 to 17 years, with a mutual option for extension. This volume corresponds to the initial production planning of the Potássio de Autazes Project, which is being implemented by Potássio do Brasil in the interior of Amazonas and will supply the main agricultural regions of Brazil.

With investments of approximately US$2.5 billion, the project already has the Preliminary License (LP) and is awaiting the Installation License (LI). It is currently in the environmental licensing phase with the Amazonas environmental agency.

Once the project is operational, as part of the barge transport contract, Hermasa will allocate the necessary assets and resources for the covered transport of Potassium Chloride mainly from the port of Potássio do Brasil, close to the village of Urucurituba, on the Madeira River. , to the port owned by Hermasa located in Porto Velho, in the northwest of Rondônia, or along the Amazon and Tapajós rivers to other destinations.

 “It is a game changer for Potássio do Brasil to sign binding contracts with Amaggi. It is the ideal company for Potássio do Brasil to hire, as it consumes a large amount of potassium for application on its farmland. They also have an extensive distribution and logistics network through their wholly owned subsidiary, Hermasa, which operates an ocean barge transshipment terminal just 40 miles upstream of our Autazes project. I have known Blairo Maggi for several years and I am excited to work with Amaggi and his talented team”, declared the president of Brasil Potash, Stan Bharti.

One of Amaggi's shareholders, Blairo Maggi, highlighted the scenario of Brazilian agribusiness in relation to international fertilizer trade. “Brazil is a country rich in agricultural knowledge, with large amounts of cultivated land, fresh water and the ideal temperature to allow year-round cultivation. However, despite being one of the world's largest consumers of potassium, globally, we are heavily exposed, as 98% of this essential plant nutrient is imported. Having a large-scale domestic source of conventional potassium - as proposed by Potássio do Brasil - is important to help ensure Brazilian and global food security. I am therefore happy that Amaggi can be part of this important project,” he revealed.