Verde Agritech reaches next milestone in Brazil with processing plant start-up

Verde Agritech PLC (TSE:NPK) has reached another milestone – the successful start-up of its processing plant in the state of Minas Gerais, Brazil.

The plant can churn out 45 tons per hour (t/h) of the firm’s fertilizer product Super Greensand (the current production rate is ten t/h).

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It is operated by a crew of ten working an eight-hour shift that can be expanded as demand picks up.

“We are proud to see the culmination of years of research and work in the form of Verde’s own processing plant,” said Verde president  and chief executive Cristiano Veloso.

“We are successfully working on the market growth for Super Greensand in Brazil and abroad.

“As with any new product, there is plenty of marketing and information work to be done, two tasks to which we are devoting an increasing amount of effort.

“As we expand our markets, we will expand our production facility so that Verde can hit its full production potential in the near future.”

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Super Greensand contains 68 minerals and trace elements, including potassium, iron, magnesium and manganese.

Unlike most potassium fertilizers, the product has no additives, no salt and no chlorine.

The cost of the plant was initially budgeted at US$500,000 but the final cost was US$600,000 because Verde advanced part of the ground work necessary for an expansion to reach the 600,000 tons  a year projected by the first phase of the pre-feasibility study.

That study shows a post-tax net present value discounted at 8% of US$1.98bn for the firm’s Cerrado Verde project and internal rate of return of 290%.

Verde Agritech closed yesterday unchanged at C$1.17.

Story by ProactiveInvestors