SAO PAULO, June 19 (Reuters) - CapitalAsia Investment on Wednesday signed an agreement to buy potash from Canadian junior miner Pacific Potash Corp’s project in the Brazilian state of Amazonas, if it becomes commercially viable.
Pacific Potash said in a statement it wants to build a mine in the region “as soon as possible,” as Brazil’s giant agricultural sector tries to reduce its reliance on imported ingredients for fertilizers.
Under the agreement, if the Amazonas potash project is developed into a mine, CapitalAsia group will buy up to 1 million tonnes of potash per year.
Financial terms of the deal were not disclosed.
The potash would primarily supply Brazil’s domestic market, but a small amount could be exported to China, where CapitalAsia operates.
Brazil imported 7.5 million tonnes of potash in 2012, or 93 percent of its consumption, according to Pacific Potash.
Brazil-based iron ore miner Vale SA quit a $6 billion potash mining project in neighboring Argentina in April.