Brazil Potash Corp (GRO.A) is in talks with banks and other lenders to secure between $1.7 billion and $1.8 billion in debt to fund its planned potash mine in Brazil's Amazonas state, Chief Executive Matt Simpson said in an interview.
The underground mine, around 100 miles from Manaus, the capital of Amazonas, will supply 2.4 million short tons of potash per year, equivalent to 17% of Brazil's current potash needs once production begins near 2030, Simpson told Reuters this week.
The project would be key for the country, a global agricultural powerhouse which imports almost all of its potash fertilizer, Simpson said.
Brazil Potash has raised around $280 million to fund construction of the potash project, which is expected to cost around $2.5 billion, Simpson added.
"We're speaking to a number of different banks," Simpson said. "We're also speaking to some export credit agencies and some international financial institutions."
Possible lenders include Brazilian and international entities, he added.
Project developers are taking steps to prevent damage to the environment in the Amazon region, Simpson said, noting that water used in potash production will largely be recycled.
Brazil Potash has already secured an agreement with agriculture company Amaggi, which committed to purchasing 550,000 tons of the mine's planned production, Simpson said.
Amaggi did not immediately respond to a request for comment.
Brazil Potash has a memorandum of understanding for another million tons with another company and is in talks with a third potential client, Simpson said.
"Over the course of the next couple of months, we're aiming to have about 2.2 million of our 2.4 million (short tons) under contracts for at least 10 years in duration," he said.
