TORONTO (miningweekly.com) – CapitalAsia Investment Holdings Group on Wednesday signed a nonbinding memorandum of understanding to buy potash from TSX-V-listed project developer Pacific Potash Corp, if its flagship project in Brazil's Amazonas state is built.
Under the terms of the agreement, which would last for a maximum of 20 years and would be formalised once the project was nearer to production, CapitalAsia Group or a designated buyer would buy up to one-million tonnes of potash a year, at the future world market price for potash.
The financial terms of the agreement were not disclosed.
Pacific Potash said the agreement signified both parties’ commitment to fully develop the Amazonas potash property “as quickly as possible”, as Brazil sought to reduce its reliance on imports of the crop nutrient.
According to Pacific Potash, Brazil imported 7.5-million tonnes of potash, or 93% of its own consumption, in 2012.