Brazil Potash signs multiple agreements with soybean titan AMAGGI
HOUSTON (ICIS)–Canadian producer Brazil Potash announced it has signed binding agreements with Amaggi Exportacao e Importacao (AMAGGI), a privately held soybean producer with operations spanning farming, commodities trading, logistics operations and energy production, and its logistics subsidiary, Hermasa Navegacao da Amazonia.
The producer said the agreement includes an offtake deal, with take or pay terms and conditions for 500,000 tonnes/year of potash and a marketing agreement to sell Brazil Potash’s remaining 1.9m tonnes/year of potash from the Autazes project.
The agreement also includes terms for barge transportation to ship the initial planned 2.4m tonnes of production to inland ports close to major farming regions within Brazil.
These contracts apply solely to Brazil Potash’s Phase One Autazes production of 2.4m tonnes/year for a 15-17 year term with a mutual option to extend.
Once the project is operational, Hermasa will allocate the required assets and resources for the covered transportation of potash primarily from Brazil Potash’s port near the village of Urucurituba to Hermasa’s port located at Porto Velho.
“It’s game changing for Brazil Potash to sign binding contracts with AMAGGI. It is the ideal company for Brazil Potash to contract with as they consume a large amount of potash for application on their farmed land,” said Stan Bharti, Brazil Potash chairman.
“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.”
Despite consumption of the nutrient being a key part of crop cultivation in Brazil, the country has been previously limited in domestic production and relies on imports to cover an estimated 98% of the volumes used annually.
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