Vancouver—Junior mining company Encanto Potash Corp. said Jan. 4 that it has successfully completed the foundation for an evolutionary offtake agreement with the National Federation of Farmers’ Procurement, Processing, and Retailing Cooperatives of India Ltd. (NACOF). The terms of the offtake agreement are summarized in a memorandum of agreement (MOA) that provides for a minimum supply of 5 million mt/y for a minimum 20-year term, pending final negotiations related to the offtake agreement. NACOF is a national farming cooperative under the Indian Ministry of Agriculture, Government of India, representing farmers in 25 states across India. One of their primary goals is to enter into contracts and collaborate for the purchase, production, manufacture, and marketing of raw materials, finished products, and by-products. NACOF also enters into joint marketing and exchange agreements with Cooperative Institutions and Public Sector Undertakings such as Metal Mineral Trading Co. (MMTC). Encanto said the MOA with NACOF now positions Encanto for the transition of the previously announced memorandum of understanding (MOU) between Encanto and MMTC (GM April 15, 2016) into a commercial marketing and distribution agreement to provide for the sale of an additional minimum of 2 million mt/y of potash, as MMTC was appointed Encanto’s exclusive worldwide potash marketing agent. Under the MMTC MOU, MMTC has the ability to sell potash sourced by Encanto into India or beyond. Encanto is exploring third-party sources as short-term supply under the MMTC MOU until such time as its flagship Muskowekwan project is developed to supply potash under the NACOF MOA and the MMTC MOU.
Transparency Across the Fertilizer Value-Chain