Brazil Potash, a Canada-based potash mining giant, has recently signed a 10-year offtake agreement with Keytrade Fertilizentes Brasil, a leading global fertilizer trading company. Under the agreement, Keytrade will purchase up to 900,000 tonnes annually from Brazil Potash’s Autazes Potash Project located in Amazonas.
The contract, announced on August 20, formalizes a memorandum of understanding signed in January and establishes a binding “take-or-pay” commitment. This follows a similar agreement already in place with Amaggi, a major Brazilian agribusiness group. With these two offtake arrangements, Brazil Potash has now secured guaranteed sales of 1.45 million tonnes per year—equivalent to approximately 60% of the project’s planned annual production capacity of 2.4 million tonnes.
Matt Simpson, CEO of Brazil Potash, stated, “The agreement with Keytrade is a major commercial milestone for the company. The stable revenue provided by these long-term contracts is essential to secure project financing and advance construction.”
Anthony Jezzi, CEO of Keytrade Fertilizentes Brasil, described the deal as a pivotal moment for the company, highlighting the opportunity to distribute domestically produced potash and reduce Brazil’s reliance on imports.
According to the agreement, Keytrade will purchase between 30% and 37% of Brazil Potash’s annual output, up to a maximum of 900,000 tonnes per year. The purchasing obligation will begin at the start of production and gradually increase as the project ramps up. The contract also includes a profit-sharing mechanism and allows for the assignment of payment rights to lenders to support project financing.
With the Keytrade agreement finalized, Brazil Potash is now in advanced negotiations with another potential partner. If successful, the total committed offtake volume could reach 91% of the project’s full production capacity. The remaining volume will be reserved for spot sales to Brazilian farmers, providing operational flexibility.
The Autazes Potash Project commenced construction in May 2024. With a designed annual production capacity of 2.4 million tonnes of potash—enough to meet 20% of Brazil’s potash demand—it is expected to begin production in 2026. The project is regarded as one of the most promising initiatives aimed at reducing Brazil’s import dependency and is poised to become the largest fertilizer project within the Amazon Rainforest in Latin America.
Under the goals of Brazil’s National Fertilizer Plan (PNF), the country aims to reduce the proportion of imported fertilizers to around 40% by 2050. Despite possessing significant untapped reserves, Brazil currently still depends on imports for over 95% of its potash requirements.
