Brazil Potash inks power deal for Autazes construction, backup over lifetime
NYSE-listed Brazil Potash and its subsidiary Potássio do Brasil have signed a definitive agreement with a Brazilian power generation company called Gera Center Amazônia Serviços e Locações De Máquinas e Equipamentos to build, operate and maintain a modular power plant for the Autazes potash project.
The agreement provides for a 28-year term, including five years of power supply during construction of the plant and 23 years of backup power once the mine is operating.
The agreement represents an important step in securing the reliable power infrastructure required for the Autezes project, as the site does not yet have access to Brazil's power grid.
Additionally, the company is preserving construction capital for the mine by outsourcing the construction, operation and maintenance of the power plant. The agreement removes $33-million of power-related spending from Autazes's upfront construction budget.
By advancing several agreements to shift the cost of building infrastructure over to outside partners who fund, own and operate equipment, the company aims to reduce the amount of capital it needs to raise and spend before the Autazes mine starts producing potash.
Gera Center will supply and install diesel generators to power construction of the mine until the grid connection is completed, while providing backup power for the mine over its lifetime. The power plant will comprise 45 containerized diesel generators that can reach a peak capacity of 20 MW.
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