Vale SA (ADR)(NYSE:VALE) plans for fertilizer assets deal remains on track in spite of a request by Brazil’s state development bank, named BNDES, to evaluate the transaction carefully. Terms of the deal, which covers the sale of some assets to Mosaic Co, are unlikely to alter considerably.

The highlights

The state development bank deferred the vote on the fertilizer agreement at a board meeting. Going by the news, this voting on the deal has been pushed away to October 20, 2016. Also, Mosaic could pay nearly $3.6 billion for certain fertilizer assets of Vale. The sale of other unnamed businesses within company’s fertilizer division is being discussed with Yara International ASA. Both BNDES and Vale, declined to comment on the matter.

Vale is disposing of assets to help fulfill a debt-reduction target of $10 billion by next year. The plan was devised by CEO Murilo Ferreira to help shield the mining firm against plunging nickel and iron ore prices, after losing $12.1 billion last year. Earlier in June, Reuters reported that Mosaic was looking at Vale’s fertilizer assets.

The deal underscores how Brazil remains a major growth spot for phosphate and fertilizer producers. Vale projects that the products demand in Latin America’s largest economy is anticipated to surge twice as fast as international demand compared to the next decade. Vale owns fertilizer assets in Argentina, Mozambique, Canada, Brazil and Peru. Mosaic acquired distribution properties from Archer Daniels Midland Co in Paraguay and Brazil last year.

Vale CEO said that he anticipates balanced demand and supply in the iron ore industry to continue, with Brazil adding a big part of seaborne supply next year. Brazil plans to add ore amounting to 28 million metric tons to the seaborne industry in 2017.

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Vale stock price have been posting strong moves since last few weeks – with the firm’s board of directors apparently set to support asset sales. The Moatze coal mine sports a suitor in Mitsui, yet there has been no information of an interested consumer for the fertilizer trade since negotiations concerning the sale are in the primary stages.