Brazil Potash Corp. Brazil Potash has announced the signing of the following legally binding agreements with Amaggi Exportação e Importação Ltda. one of the world's largest privately held soybean producers with complimentary operations spanning agricultural farming, commodities trading, logistics operations and energy production, and also with its logistics subsidiary, Hermasa Navegação da Amazônia Ltda.
The offtake agreement is for 500 000 tpy of potash, while the mar-keting agreement is to sell Brazil Potash's remaining 1.9 million tpy of potash. The barge transportation agreement is to ship the initial planned 2.4 million tpy of potash of production to inland ports close to major farming regions within Brazil.
All of these agreements consider very high standards and obliga-tions for both parties on environmental, social, and governance concerns.
These contracts apply solely to Brazil Potash's Phase One Auta-zes production of 2.4 million tpy of potash for a 15 to 17 year term with a mutual option to extend. The offtake agreement and market-ing agreement potash sale price is based on the spot Brazil deliv-ered price for granular Muriate of Potash (ie MOP CFR Brazil) plus inland freight savings minus a discount.
Once the project is operational, as part of the barge transportation agreement, Hermasa will allocate the required assets and resources for the covered transportation of potash primarily from Brazil Pot-ash's port near the village of Urucurituba on the Madeira River to Hermasa's owned port located at Porto Velho in the northwest state of Rondonia or through the Amazonas and Tapajos's rivers to other destinations.
Stan Bharti, Chairman of Brazil Potash stated: “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; they al-so 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. I have known Blairo Maggi for a number of years and am excited to be working with AMAGGI and its talented team.”
Blairo Maggi, one of the shareholders of AMAGGI stated: “Brazil is a country rich in farming know-how with massive amounts of culti-vated land, fresh water and an ideal temperature to allow for year-round growing. However, despite being one of the world's largest consumers of potash, globally, we are heavily exposed given that 98% of this essential plant nutrient is imported. 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. I am therefore happy that AMAGGI is able to be part of this important project.”
Read the article online at: https://www.worldfertilizer.com/potash/05102022/brazil-potash-signs-binding-offtake-marketing-and-barge-transportation-agreements-with-amaggi/
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