Brazil Potash Corp. (NYSE-American: GRO) has provided an update on a court petition concerning its Autazes potash project in Amazonas, Brazil. The company said it learned of the filing through publicly available court records and had not been formally notified of it.
#Petition forms part of existing proceedings
The petition was submitted by Brazil’s Public Defender’s Office, known as the DPU, on behalf of certain Indigenous organisations opposed to the project. It was filed directly with the President of Brazil’s Supreme Federal Court.
According to Brazil Potash, the filing is a procedural request within a public civil action originally brought by the Federal Public Prosecutor’s Office in December 2016. The company said it is not a new lawsuit and does not introduce new allegations or underlying facts.
The request seeks to overturn recent rulings by the Federal Regional Court of the 1st Region, or TRF-1, made in favour of Brazil Potash and the Mura Indigenous Council. It also seeks to suspend implementation activities linked to the Autazes Project.
#Company cites previous TRF-1 rulings
Brazil Potash said the issues raised in the petition have already been extensively examined in federal court proceedings. The company referred to TRF-1 decisions that recognised the Mura Indigenous Council as a representative organisation for Mura Indigenous communities in the municipality of Autazes.
The company also said the rulings found that the Indigenous consultation process complied with the requirements of Convention No. 169 of the International Labour Organization of the United Nations. The decisions further recognised the validity of the free, prior and informed consultation and allowed the project’s environmental licensing process to continue.
Brazil Potash said the consultation process lasted more than six years and included more than 35 Indigenous villages. It ended with an assembly in which approximately 90% of participating communities voted in favour of continuing the project.
#Prosecutor-General recommends petition not be considered on its merits
On 9 July 2026, Brazil’s Office of the Prosecutor-General issued a formal opinion in the proceeding. The opinion recommended that the petition not be considered on its merits.
Brazil Potash said the Prosecutor-General’s Office concluded that the DPU lacked standing to submit the request and that the procedural mechanism used was not appropriate for reassessing facts and evidence. The opinion is part of the proceeding and does not itself represent a final ruling on the petition.
#Brazil Potash prepares response
Brazil Potash said the petition does not alter the legal status of the Autazes Project or the environmental licences granted to the company, which it said remain in full force and effect. The company and its external Brazilian legal advisers are reviewing the filing and preparing a response.
The company said it intends to defend its position and regards the petition as another procedural development in existing litigation rather than a new court case or a new substantive challenge to the project. It said further updates would be provided as necessary.
#Project production plans remain subject to stated risks
Brazil Potash is developing the Autazes Project to produce potash for Brazil’s domestic market. Management says initial planned production could reach up to 2.4 million tonnes of potash per year and that the project could potentially supply approximately 20% of Brazil’s current potash demand. The company also expects that 100% of its production will be sold domestically.
These statements are forward-looking and are subject to risks and uncertainties, including factors outside the company’s control. The company also identifies uncertainty relating to the court proceedings, environmental licences, project development, and government and environmental regulation.
#Key Takeaways
- The DPU filed a procedural petition concerning the Autazes Project directly with the President of Brazil’s Supreme Federal Court.
- Brazil Potash said the filing is part of a public civil action originally brought in December 2016, rather than a new lawsuit.
- The petition seeks to reverse recent TRF-1 decisions and suspend project implementation activities.
- On 9 July 2026, the Prosecutor-General’s Office recommended that the petition not be considered on its merits.
- Brazil Potash said its environmental licences remain in force while it reviews the petition and prepares its response.
Original source: Read original article