Brazil Potash Signs Binding Offtake, Marketing And Barge Transportation Agreements With Amaggi, One Of The World’s Largest Private Producer Of Soyabeans
October 3rd 2022 - NR
Brazil Potash is excited to announce the signing of the following legally binding agreements with Amaggi Exportação e Importação Ltda. (“AMAGGI”), one of the world’s largest privately held soybean producer with complimentary operations spanning agricultural farming, commodities trading, logistics operations and energy production, and its logistics subsidiary, Hermasa Navegação da Amazônia Ltda.:
1) Offtake Agreement, with take or pay terms and conditions for 500,000 tonnes per year of potash;
2) Marketing Agreement to sell Brazil Potash’s remaining 1.9 million tonnes of potash per year; and
3) Barge Transportation Agreement to ship the initial planned 2.4 million tonnes of potash per year of production to inland ports close to major farming regions within Brazil.
All of these Agreements consider very high standards and obligations for both parties on environmental, social, and governance concerns.
These contracts apply solely to Brazil Potash’s Phase One Autazes production of 2.4 million tonnes of potash per year for a 15 to 17 year term with a mutual option to extend. The Offtake Agreement and Marketing Agreement potash sale price is based on the spot Brazil delivered price for granular Muriate of Potash (i.e. 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 Potash’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 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. 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 cultivated 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.”
About AMAGGI
Founded in 1977, AMAGGI is the largest Brazilian grain and fiber company with 2021 revenues of US$7 billion. Present in several stages of the agribusiness chain, AMAGGI operates in the agricultural production of grains, fibers and seeds, origination, processing and commercialization of grains and inputs, grain river and road transport, port operations, in addition to the generation and commercialization of renewable electric energy.
AMAGGI produces circa 1.1 million tons of grains and fibers per year - including soy, corn, and cotton - and has a commercial relationship base of approximately 6000 rural producers. Headquartered in Cuiabá (MT), AMAGGI is present in all regions of Brazil, with farms, warehouses, offices, factories, river and road fleet, port terminals and hydroelectric plants. Abroad, the company has units and offices in Argentina, China, Netherlands, Norway, Paraguay, and Switzerland.
AMAGGI’s Social and Environmental Management (Gestão Socioambiental AMAGGI, GSA) is based on ISO standards 14001:2015 (environment) and complies to the requirements of NBR 16001:2012 (social responsibility) as well as to the standards required by important certifications such as RTRS (Round Table on Responsible Soy), Proterra, and ABR/BCI (Responsible Brazilian Cotton, Algodão Brasileiro Responsável/Better Cotton Initiative), among others. To AMAGGI, the development of sustainable businesses is directly connected to the way the company promotes its activities, considering the impact on the environment. In that sense, throughout the years the company has increased efforts to consolidate a business model that builds and supports strategic partnerships and the adoption of broad, transparent commitments.
About Brazil Potash
Brazil Potash has advanced its large-scale development stage potash project to a near construction ready state. Brazil is one of the world’s largest and fastest growing consumers of potash but imports 98% of its needs at high cost. As a result, over 1.3 million tonnes of Greenhouse Gas emissions are unnecessarily generated from maritime transportation and potash production in jurisdictions with higher emission factors. Brazil Potash’s sylvanite ore body is in Brazil beside a major river, which will enable the company to extract, process and deliver potash for the same cost that importers pay for transportation alone. The company has completed a feasibility study, EISA and obtained majority of the permits required for project construction.
For more information, please contact:
Brazil Potash Investor Relations
info@brazilpotash.com |
