Brazil Potash secures offtake agreement with Keytrade

Brazil Potash (NYSE: GRO) announced Thursday a commercial offtake agreement between its subsidiary Potássio do Brasil Ltda. and Keytrade AG, one of the world’s leading fertilizer trading companies.

The binding agreement establishes a 10-year take-or-pay commitment for Keytrade to purchase up to 900,000 tons of potash annually from Brazil Potash’s Autazes project, representing about 30% to 37% of the mine’s annual production.

After facing headwinds due to some opposition by Indigenous groups, the state of Amazonas granted Brazil Potash last year the license to build the Autazes project, pegged to be the largest fertilizer mine in Latin America within the Amazon rainforest.

Last month, Brazil Potash signed an MOU with private equity firm Fictor Group outlining the terms of a $200 million infrastructure funding for Autazes.

“This agreement with Keytrade is a major milestone in Brazil Potash’s commercial development,” Brazil Potash CEO Matt Simpson said in a news release.

Combined with the existing take-or-pay agreement with Amaggi Exportacão E Importacão Ltda., the company now has binding commitments for 1.45 million tons of its planned 2.4 million tons of annual production.

“These long-term contracts provide the revenue certainty essential for securing project financing and advancing construction,” Simpson added.

“This collaboration with Brazil Potash is a strategic step toward reducing Brazil’s reliance on imports and fostering economic growth in the Amazon region,” Keytrade Fertilizantes Brasil CEO Anthony Jezzi added. 

With the Keytrade agreement finalized, Brazil Potash said it has secured binding offtake agreements covering approximately 60% of planned production and is also in advanced discussions with a prospective partner that would increase total volumes to about 91% of its annual capacity.