Brazil Potash Corp. could reduce initial construction costs at its Autazes Potash Project by up to US$190 million following the Brazilian Senate's approval of the Profert legislation.

The newly passed bill, which now heads to President Luiz Inácio Lula da Silva to be signed into law in the coming weeks, combines a production tax credit, a mandatory domestic-content floor for fertilizer sold in the country, and credit lines from development bank BNDES.

When combined with previously established incentives from the Superintendence of the Manaus Free Trade Zone, the Profert tax exemptions could exempt up to ~US$190 million in federal taxes on the Autazes Project’s US$2.5 billion initial capital expenditure budget. That potential relief cuts the upfront capital Brazil Potash needs to raise before construction begins by approximately 7%.

“Profert alone doesn't solve Brazil's potash dependency; no single law would. But, for the first time, it creates a market mandate for that production to happen here in Brazil, and it reduces the capital a project like ours needs to raise to deliver that production. The bill changes the conversation with those who finance companies in Brazil”

— Sérgio Leite, President of Potássio do Brasil

The legislative milestone builds on recent advances for the development. In June 2026, the company completed full Front-End Engineering Design coverage for Autazes following contracts awarded to Wood, Promon Engenharia, WSP UK, and Redpath Deilmann Mining. Those engineering completions support ongoing construction debt financing discussions with Development Finance Institutions and Export Credit Agencies. Additionally, appeals court rulings in August 2026 confirmed the project's environmental licenses by upholding the Mura Indigenous consultation process and state licensing authority.

The new legislation marks a shift from earlier tax relief estimates. In December 2025, Brazil Potash estimated up to US$94 million in potential tax savings solely from its registration with the Manaus Free Trade Zone. The addition of Profert roughly doubles that potential federal tax exemption figure.

Realizing the tax exemptions requires navigating a competitive selection process managed by the Ministry of Agriculture and Livestock and securing specialized legal counsel to combine the distinct regional and federal regimes. Consequently, the company notes there is no certainty those benefits will be realized in full.

Read the full announcement: Brazil Senate Passes Law to Incentivize New Domestic Fertilizer Production With Several Potential Construction Funding Benefits for Brazil Potash