Canada-based potash giant Brazil Potash has signed a 10-year offtake agreement with leading global fertilizer trading company Keytrade Fertilizantes Brasil, ensuring Keytrade will purchase up to 900,000 tons annually from Brazil Potash's Autazes potash project in Amazonas state. The contract, announced on August 20, formalizes a memorandum of understanding signed in January and establishes a binding "take-or-pay" commitment.
The company had previously reached a similar agreement with leading Brazilian agribusiness Amaggi, bringing total guaranteed sales to 1.45 million tons per year—covering approximately 60% of Brazil Potash's planned annual capacity of 2.4 million tons.
"The agreement with Keytrade represents a significant milestone in our commercial development," said Brazil Potash CEO Matt Simpson. "The stable revenue provided by these long-term contracts is crucial for securing project financing and advancing construction."
Keytrade Fertilizantes Brasil CEO Anthony Jezzi described the agreement as marking a pivotal moment for the company, enabling distribution of domestically produced Brazilian potash while reducing the country's import dependence.
Under the agreement terms, Keytrade will purchase 30% to 37% of Brazil Potash's annual production, capped at 900,000 tons per year. Purchase obligations begin upon production startup and will gradually increase during the capacity ramp-up phase. The contract includes profit-sharing mechanisms and allows payment rights to be assigned to lenders to support project financing.
Brazil Potash indicated that following the Keytrade agreement, it is in advanced negotiations with another potential partner, potentially raising contracted purchase volumes to 91% of total capacity. Remaining capacity will be used for spot sales to Brazilian farmers, maintaining operational flexibility.
The Autazes project began construction in May 2024 with a designed annual capacity of 2.4 million tons of potash, sufficient to meet 20% of Brazil's potash demand. Production is expected to commence in 2026. The project is considered the most promising initiative for reducing Brazil's import dependence and is poised to become the largest fertilizer project within the Amazon rainforest in Latin America.
According to Brazil's National Fertilizer Plan targets, the country aims to reduce imported fertilizer dependency to around 40% by 2050. Despite possessing substantial undeveloped reserves, Brazil currently imports over 95% of its potash requirements.