Brazil’s Federal Senate has greenlit a R$10 billion ($2.7 billion) fertiliser incentive scheme, which aligns with Aguia Resources’ (ASX:AGR) domestic phosphate strategy.
The National Fertiliser Production Incentive (Profert), which has been presented to the President of Brazil for signature, aims to reduce Brazil’s dependence on imported fertilisers, with more than 80% of national requirements currently sourced offshore.
The five-year scheme introduces minimum domestic fertiliser content requirements for products sold in Brazil, starting at 2% and rising to 10% by 2037.
Aguia is well-positioned to benefit from the initiative, having commenced production of phosphate at its Caçapava do Sul operations in Rio Grande do Sul in May 2026.
CEO Timothy Hosking says the timing aligns with the company’s expansion plans.
“This government incentive scheme comes at an ideal time for Aguia as we ramp up phosphate production at Caçapava do Sul, located in Brazil’s strategically important southern agricultural region,” Hosking says.
“Our previously announced expansion and growth pipeline is clearly aligned with the government’s objective to increase domestic fertiliser production and provide a strong alternative to imported chemical phosphates.”
The domestic fertiliser requirements for products sold in Brazil will be monitored and adjusted based on their impact on investment, capacity, production, and supply chain security.
The incentive will provide support through guarantees, interest subsidies, financial instruments, and research incentives. Projects are prioritised according to competitiveness, maturity, execution capacity, regional impact, supply-chain integration, and lower carbon intensity.
Hosking says the company looks forward to engaging with authorities to determine available support for accelerating additional developments in its portfolio.
Aguia Resources is a multi-commodity explorer and developer focused on gold projects in Colombia and phosphate assets in Brazil.
Write to Paula Fabe at Mining.com.au
Images: Aguia Resources
