Brazil Potash presented its funding strategy for the Autazes potash project at the Water Tower Research Virtual Insights Conference on September 23, 2026. CEO Matt Simpson highlighted that Brazil imports roughly 95%‑96% of the potash it consumes, despite accounting for about 22% of global demand. The market is dominated by Canada, Russia and Belarus, which together supply roughly 80% of global potash, while Israel and Jordan provide about 12%.
Potash prices have fluctuated between $280 and $1,200 a ton over the past five years, peaking at $1,200 in March 2022. Current pricing is around $400 a ton. Brazil Potash plans an initial output of 2.4 million short tons per year, enough to meet about 17% of Brazil’s domestic potash needs. Pre‑sales cover 91% of that volume, contracted at market prices to major Brazilian agricultural groups.
The company estimates production costs at $80 a ton. Inland freight adds $50‑$70 per ton, implying operating margins of $270‑$320 per ton before freight capture. In Brazilian reais, selling prices are quoted at BRL 450‑BRL 470 per ton against a cost of BRL 80, with a plan to shift roughly BRL 350 million of construction capital into operating costs via third‑party infrastructure.
Regulatory progress includes 21 installation licenses covering two mine shafts, a processing plant, road upgrades and a river‑barge port. The only pending permit is a 100‑mile power‑line connection, which management deems low risk due to alternatives such as LNG and on‑site cogeneration. The project has survived five court challenges, with the Court of Appeal and the Supreme Federal Court affirming permitting decisions in August 2024.
Engineering design is being handled by Wood and Promon for surface facilities and by WSP and Redpath for underground development. Full front‑end engineering design (FEED) is slated for completion in Q2 2025.
Brazil’s national policy aims to cut reliance on imported nitrogen, phosphate and potash from about 85% to 45% by 2050. The Pro‑Fertilizer (Profert) Law exempts certain imported equipment from taxes, offers government‑backed construction loans at a 3% rate versus a 14% prime rate, and mandates domestic content rising from 2% in 2025 to 10% by 2030, with potential ceilings up to 30%.
Simpson concluded with a call for investors to recognize the project’s funding status, emphasizing that full financing is his primary focus.
