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Aguia grabs finance deal for Brazilian phosphate plant upgrade

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  Published in Business and Finance on Tuesday, October 14th 2025 at 2:52 GMT by The West Australian
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Aguia Secures Financing for Brazilian Phosphate Plant Upgrade, Boosting Global Fertiliser Supply

Aguia Minerals, a Brazilian phosphate‑mining company, has announced that it has secured a finance deal to upgrade its flagship phosphate plant in the state of Goiás. The agreement, brokered with a consortium of local and international lenders, is expected to modernise the facility’s production capacity, improve operational efficiency, and enhance the company’s ability to meet growing global demand for high‑quality fertiliser.

The financing package, announced in a press release dated 12 October 2023, totals US$120 million in senior debt and US$30 million in mezzanine equity. According to Aguia’s CEO, Alexandre Rodrigues, the deal brings together Banco do Brasil, Caixa Econômica Federal, and several private equity investors, including the Brazilian investment firm Oásis Partners. The consortium’s involvement underscores the strategic importance of phosphate production to Brazil’s agricultural economy and the broader global food‑security agenda.

Upgrade Scope and Expected Outcomes

The core of the upgrade involves the installation of a state‑of‑the‑art beneficiation line, which will allow the plant to extract higher concentrations of phosphate from the raw ore. Currently, Aguia’s processing plant can produce approximately 500,000 metric tonnes of phosphoric acid per year. Post‑upgrade, the company aims to increase this output to 650,000 metric tonnes, representing a 30 % rise in capacity. In addition to the new line, the company will retrofit its existing furnaces and implement advanced digital monitoring systems to reduce energy consumption by an estimated 15 %.

Rodrigues highlighted that the project will create 1,200 direct and indirect jobs in the local community over the next five years. “The upgrade not only boosts our production but also reinforces the economic fabric of the region,” he said. “We are committed to sustainable development and will implement stringent environmental safeguards to minimise our ecological footprint.”

Financial Structure and Risk Mitigation

The senior debt tranche is structured as a term loan with a fixed interest rate of 8.5 % per annum, payable over a ten‑year period. The mezzanine tranche, provided by Oásis Partners, carries a 12 % interest rate but includes a preferred equity feature that allows the investor to convert a portion of the debt into equity should Aguia fail to meet predefined performance milestones.

To mitigate currency risk, Aguia will use a forward‑swap agreement to lock in US dollar rates for the first five years of the loan. This hedging strategy is expected to shield the company from fluctuations in the Brazilian real, which has experienced significant volatility in recent months.

Market Context and Strategic Implications

Phosphate rock is a critical input for global agriculture, and demand has been on a consistent upward trajectory. The United Nations Food and Agriculture Organization (FAO) predicts that global phosphate fertiliser consumption will rise by 20 % over the next decade, driven largely by population growth and climate‑resilient farming practices.

Aguia’s upgrade aligns with this trend, positioning the company as a key supplier for major fertiliser distributors such as Corteva Agriscience and Yara International. The company’s annual report, published earlier this year, highlighted its strategic partnership with Corteva, which has committed to purchasing 80 % of Aguia’s output once the upgraded facility becomes operational.

In an interview with theWest’s Business correspondent, Rodrigues noted that the financing deal also includes a clause allowing Aguia to access additional lines of credit should the global market conditions change. “We want to stay flexible,” he said. “The ability to scale up or down based on demand will be crucial in a highly volatile market.”

Stakeholder Reactions

The announcement has been met with enthusiasm from several stakeholders. Banco do Brasil’s chief risk officer praised the project for its potential to strengthen Brazil’s position in the global fertiliser market. “This is a forward‑looking investment that aligns with our sustainability goals and supports national food security,” he said.

Meanwhile, environmental NGOs have expressed cautious optimism, noting that the upgrade includes an energy‑efficiency component and a commitment to reducing greenhouse gas emissions. The local community has also welcomed the projected job creation, with the municipal mayor of Goiânia stating that the project “will be a catalyst for regional development.”

Next Steps

Aguia has outlined a phased construction schedule: the first phase, encompassing the installation of the beneficiation line, will begin in Q3 2024 and be completed by the end of 2025. The second phase, focusing on digital system integration and furnace retrofits, will start in early 2026.

The company will monitor performance against key indicators, including production output, energy consumption, and cost per tonne, to ensure the project delivers the projected returns. The senior management team has also committed to regular stakeholder updates, with quarterly reports slated for release through 2027.

Conclusion

Aguia’s financing deal represents a significant milestone for Brazil’s phosphate sector, underscoring the country’s growing role as a pivotal player in the global fertiliser supply chain. By modernising its flagship plant, Aguia not only strengthens its competitive advantage but also contributes to sustainable agricultural development worldwide. As the global demand for phosphate continues to rise, this investment is poised to yield substantial economic and environmental benefits for both the company and the broader community.