Brazil Potash Secures 28-Year Power Deal to Reduce Costs for Autazes Project

Brazil Potash Corp., a critical mineral exploration and development company, has secured a significant agreement to reduce upfront capital expenditures for its Autazes Potash Project in Amazonas State, Brazil. The company’s wholly-owned subsidiary, Potássio do Brasil Ltda., has entered into a 28-year contract with Gera Center, a Brazilian power generation company, to provide a modular diesel power plant for the project.

The 20 MW power plant will supply electricity for the construction of two mine shafts, the processing plant, and the port/terminal until the grid connection line (SIN) is completed. Once the mine begins operations, the same system will serve as a backup power source for 23 years. This agreement is expected to save the company approximately $33 million in upfront power costs and deliver around $10 million in net savings over the life of the contract.

According to Sergio Leite, President of Potássio do Brasil, "Power is one of the most critical pieces of infrastructure for building and operating a mine in the Amazon, and this agreement represents an important step in securing the reliable power infrastructure required for the Autazes Project. By partnering with Gera Center under a Build-Own-Operate structure, we preserve construction capital for the mine while taking steps to ensure the Autazes Project has the reliable power it needs, both to build and for the life of the operation."

The modular power plant will consist of 45 containerized diesel generators, with an initial capacity of 10 megawatts that will increase to 20 megawatts over the first year. The system is expected to provide a minimum of 98% monthly availability and 98.5% annual availability during the construction phase. After the construction period, the power generation system will transition to reserve operation to provide backup power for the mine.

The agreement is part of Brazil Potash's broader strategy to work with specialized infrastructure partners to reduce upfront capital requirements as the company advances the Autazes Project toward construction. This move is expected to increase equity investor returns while still securing the necessary power infrastructure.

Founded in 1991, Gera Center is a Brazilian power generation company with expertise in mission-critical energy solutions for various sectors, including industrial, mining, agribusiness, infrastructure, and construction. The company will deploy a 20 MW modular power plant utilizing high power-density technology to optimize efficiency and minimize environmental impact. The project is expected to create approximately 200 direct and indirect jobs during both the implementation and operational phases.

Brazil Potash is developing the Autazes Project to supply potash to one of the world's largest agricultural exporters. The company's subsidiary, Potássio do Brasil, is working to secure potash production and transportation through a partnership with Amaggi, one of Brazil's largest farmers and logistical operators of agricultural products. The potash produced will be transported primarily using low-cost river barges on an inland river system.

This agreement is one of several Brazil Potash is pursuing to shift the cost of building infrastructure over to outside partners who fund, own, and operate the equipment. The goal is to reduce the amount of capital the company needs to raise and spend before the mine starts producing potash, thereby increasing equity investor returns while still securing the reliable power the project needs for both construction and long-term operations.