President Luiz Inácio Lula da Silva has signed the Profert fertilizer development legislation into law without vetoes, establishing fiscal provisions and preferential government financing channels designed to lower upfront capital requirements at the Autazes Potash Project in Amazonas State, Brazil.

The legislation combines with previously established tax benefits from the Superintendence of the Manaus Free Trade Zone to unlock potential construction tax credits and BNDES-administered financing. The framework also creates a domestic-content floor for fertilizer sold within the country, starting at 2% in 2027 and rising to 10% by 2037, establishing a built-in demand base for anticipated production.

Brazil Potash Corp. has previously secured binding take-or-pay agreements covering approximately 91% of the Autazes Project's planned production through long-term contracts ranging from 10 to 17 years.

On the legal front, Brazil’s Court of Appeal blocked an appeal challenging the development, while the Supreme Federal Court rejected a separate petition seeking to halt construction activities. These rulings leave the project's environmental licenses and Indigenous consultation process fully in place.

Engineering work has also advanced with the award of full-project Front End Engineering Design coverage. WSP UK Ltd. and Redpath Deilmann were appointed to handle the mine shaft and underground development scope, joining Wood and Promon Engenharia on surface facilities. The company targets completion of the engineering design work in early Q2 2027, marking a key prerequisite for construction debt financing. Workforce training and geotechnical drilling arrangements have likewise commenced on site.

“We've been advancing the Autazes Project commercially, technically, and legally, and the developments of recent months have only added wind in our sails,” said Matt Simpson, Chief Executive Officer of Brazil Potash. “Favorable rulings from Brazil's courts, the signing of Profert into law, and the award of our Front End Engineering Design packages all reinforce our steady momentum toward construction.”

Matt Simpson, Chief Executive Officer

These combined legislative, legal, and engineering milestones position the company to advance its financing initiatives and transition toward active construction at the Autazes Project.

Read the full announcement: Brazil’s Government Supports Potash Construction Financing