By Brazil Stock Guide – Brazil Potash (NYSE American: GRO) has signed a binding 10-year supply agreement with Keytrade Fertilizantes Brasil, a unit of Switzerland’s Keytrade AG, to deliver as much as 900,000 tons of potash annually from its Autazes project in the Amazon state of Amazonas, Globo Rural reported. The contract covers between 30% and 37% of the company’s projected annual output of 2.4 million tons.
The take-or-pay agreement requires Keytrade to pay for the contracted volumes regardless of actual consumption, ensuring predictable cash flows. Combined with an existing deal with Amaggi Exportação e Importação, Brazil Potash (GRO) has now secured long-term commitments for about 60% of its total production capacity.
The company said the agreements are critical to securing financing for the $2.5 billion Autazes project, as they guarantee revenue streams that can be leveraged with financial institutions. Deliveries under the Keytrade contract will start once production begins, ramping up gradually until full capacity is reached.
Pricing includes a marketing fee and profit-sharing mechanisms, reflecting the strategic location and expected quality of the potash. Brazil Potash (GRO) also disclosed that it is in advanced talks with a third potential buyer, which could lift contracted volumes to about 91% of output if finalized.
In parallel, the miner signed a memorandum of understanding with Fictor Energia to build a renewable energy transmission line valued at around $200 million, along with an additional $20 million investment to support the energy needs of the project.