Brazil Potash and local leaders discuss support for the Autazes Potash Project, enhancing agricultural security and community development.
Quiver AI Summary
Brazil Potash Corp. has reaffirmed its commitment to the Autazes Potash Project, a key initiative for agricultural security in Brazil, following a strategic meeting with Amazonas State Governor Wilson Lima and local leaders, including Mayor Thomé Neto and Mura Indigenous Council representatives. The discussions emphasized the project’s role in supporting economic development, job creation, and environmental conservation in the region, alongside a focus on 'Green Potash' production. Recent advancements, such as an MOU with indigenous communities and additional agreements for potash off-take, highlight positive engagement with local stakeholders. Brazil Potash aims to establish a domestic supply of potash, reducing reliance on imports and enhancing food security while respecting indigenous rights and promoting social development. CEO Matt Simpson underscored the importance of fostering constructive relationships with indigenous groups and local governments as the project progresses.
Potential Positives
- Strategic meeting with key government and indigenous leaders enhances community and governmental support for the Autazes Potash Project, indicating strong local backing for the company's initiatives.
- The Amazonas State Government's commitment to ‘Green Potash’ aligns with Brazil Potash's goals of sustainable development and environmental conservation, positioning the project favorably within regulatory frameworks.
- Recent achievements, including the signing of a Preliminary Agreement of Cooperation with the Mura Indigenous Council and securing water extraction permits, demonstrate Brazil Potash's proactive engagement with local communities and environmental stewardship.
- The Anticipated annual production of 2.4 million tons of potash will significantly reduce Brazil's reliance on imported fertilizers, supporting national food security and lowering greenhouse gas emissions by about 1.4 million tons per year.
Potential Negatives
- The reliance on forward-looking statements introduces uncertainty about the project's future, potentially undermining investor confidence.
- The need for ongoing consultations and agreements with indigenous communities may indicate complexities and challenges in stakeholder relations that could delay project timelines.
- Despite government support, the company must navigate potential market risks attributed to Brazil's heavy reliance on imported potash, which raises questions about the feasibility and timing of achieving projected production levels.
FAQ
What is the Autazes Potash Project?
The Autazes Potash Project is Brazil's largest potash fertilizer project aimed at enhancing agricultural security and self-sufficiency.
Who are the key stakeholders in the Autazes Potash Project?
Key stakeholders include Brazil Potash, Amazonas State Government, local municipalities, and the Mura Indigenous Council representing local communities.
What is the project's impact on Brazil's agricultural sector?
The project aims to establish a domestic supply of potash, reducing Brazil's reliance on imports and enhancing food security.
How does the project support social development?
The project promotes job creation, environmental preservation, and constructive dialogue with indigenous communities to ensure sustainable social development.
What agreements have been made with indigenous communities?
A Preliminary Agreement of Cooperation was signed to respect the rights and culture of the Mura Indigenous communities involved in the project.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
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Strategic Discussion with Governor Lima Reinforces State-Level Support for Important Project to Brazil's Agricultural Security
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Productive Engagements with State, Municipal and Indigenous Leadership Demonstrate Broad Community Support for Autazes Potash Project Development
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Meeting Follows Recent Strategic Advancements Including Indigenous MOU and Second Major Offtake MOU
MANAUS, Brazil, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Brazil Potash Corp. (“Brazil Potash” or the “Company”) (NYSE-American: GRO), a company developing and constructing the largest potash fertilizer project in Brazil, today announced that Executive Chairman Mayo Schmidt, along with CEO Matt Simpson and Directors Brett Lynch and Peter Tagliamonte, recently met with Amazonas State Governor, Wilson Lima, Autazes Mayor Thomé Neto, and Coordinator of the Mura Indigenous Council (CIM), Kleber Mura, and representatives of the Mura villages in the municipality of Autazes, state of Amazonas, responding to an invitation from the Mura people, to discuss the Company's progress in construction of its strategic Autazes Potash Project.
Governor Wilson Lima highlighted the Amazonas State Government’s commitment to promoting ‘Green Potash’ in Autazes (120 kilometers from Manaus), combined with social development and environmental conservation. “We are willing to provide full support for the implementation of the potash exploration project in Autazes. In addition to the economic aspect of making the state of Amazonas a powerhouse in fertilizer production, our main objective is to promote social development, generating jobs, ensuring environmental preservation and dialoguing with the indigenous people.”
Find out more at: https://www.agenciaamazonas.am.gov.br/noticias/governador-wilson-lima-reafirma-compromisso-para-desenvolvimento-social-e-economico-pelo-potassio-verde-em-autazes/
“Our meeting with Governor Lima, Mayor Thomé Neto, and the Mura Indigenous Council reinforces the strategic importance of the Autazes Potash Project to both Brazil's agricultural sector and global food security,” said Mayo Schmidt, Executive Chairman of Brazil Potash. “Having spent decades building world-class agricultural businesses, including my roles as Chairman and CEO of Nutrien and CEO of Viterra, I see tremendous potential in Brazil Potash's ability to establish a crucial domestic supply of potash for Brazil's agricultural sector and reduce reliance on foreign imports. With our recent achievements, including securing water extraction permits, a second major offtake MOU, and advancing our partnerships with local indigenous communities, we are well-positioned to advance construction of this strategic asset for Brazil's agricultural sector.”
“We appreciate the continued support from state and municipal government, and the excellent relationship we have developed with the Mura Indigenous Council as we advance construction of what we believe will be Brazil's premier domestic potash operation,” said Matt Simpson, CEO of Brazil Potash. And he added “After the conclusion of the Prior Consultation, which strictly followed the Mura Consultation Protocol, developed based on ILO Convention 169, our relationship with the Mura people was established in a positive and constructive way. This dialogue resulted in the signing of a Preliminary Agreement of Cooperation, which reaffirms Brazil Potash's commitment to respecting the culture, rights and development of the indigenous communities involved.”
“Our strategic location in Amazonas state positions us to become the lowest-cost supplier to Brazilian farmers while creating significant local economic benefits through job creation and development of supporting infrastructure,” Mr. Simpson completed.
The Brazil Potash delegation's agenda in Manaus and Autazes, state of Amazonas, was coordinated by the president of our subsidiary in Brazil, Potássio do Brasil Ltda., Adriano Espeschit, who led the Company's leadership team on meetings with local investors and visits to potential service providers who could contribute to the progress of the Autazes Potash Project. In addition, currently ongoing conversations with groups regarding the funding for construction of the power line that will support the Project were advanced.
In Autazes, the delegation flew over the area where the Autazes Potash Project is being built and visited Casa da Luz da Infância — a non-profit entity that carries out very impactful social assistance work focused on supporting the development of underprivileged children in the municipality; Potássio do Brasil Ltda. has provided funding support to this agency since 2014.
About Brazil Potash
Brazil Potash (NYSE-American: GRO) (www.brazilpotash.com) is developing Brazil’s largest potash project that will supply sustainable fertilizers to one of the world’s largest agricultural exporters. Brazil is critical for global food security as the country has amongst the highest amounts of fresh water, arable land, and an ideal climate for year-round crop growth, but is vulnerable as it imported over 95% of its potash fertilizer in 2021, despite having what is anticipated to be one of the world’s largest undeveloped potash basins in its own backyard. The potash produced will be transported primarily using low-cost river barges on an inland river system in partnership with Amaggi (www.amaggi.com.br), one of the largest farmers and logistical operators of agricultural products in Brazil. With initial planned annual potash production of up to 2.4 million tons per year, Brazil Potash’s management believes it could potentially supply approximately 20% of the current potash demand in Brazil. Management anticipates 100% of Brazil Potash’s production will be sold domestically to reduce Brazil’s reliance on potash imports while concurrently mitigating approximately 1.4 million tons per year of GHG emissions.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are statements that are not historical facts. Words such as “expects”, “anticipates”, “believes” and “intends” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements, including statements relating to potential outcomes following meetings with Brazilian government officials and the indigenous community representatives, are subject to risks and uncertainties, many of which are beyond the control of the Company, including those described in the “Risk Factors” section of the Company’s registration statement on Form F-1, as amended, filed with the SEC in connection with the IPO, and the supplemented PREP prospectus filed in each of the provinces and territories of Canada, other than Québec. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, unless required by law.
C ontact:
Brazil Potash Investor Relations: [email protected]