potash warehouse

SAO PAULO (Reuters) – Fertilizer manufacturer Verde Agritech said on Monday it had requested permission from the National Agency for Land Transport (ANTT) to build a rail link in the hinterland of Minas Gerais, in a project that could require more than half a billion dollars in investment and must be handed over to the railway operator, according to a statement released to the market.

The company’s project provides for a route between the company’s facilities in San Gottardo and the city of Ibia in the Triangulo Mineiro region for the transport of potash production.

“By connecting the Verde potash mines, the largest known reserve in Brazil, with its main consumer centers, the railroad will give farmers access to even more production,” said Cristiano Veloso, Founder and CEO of Verde Agritech.

According to the company, the line will be connected to the rail network connecting the seven states and the Federal District, part of which is operated by Ferrovia Centro Atlântica (FCA).

“FCA railways are the main route between the southeast, northeast and midwest of Brazil,” the statement said.

The company currently has two active plants in San Gottardo and Matutin with an annual production capacity of up to 3 million tons of fertilizer.

This year, the company announced the completion of the construction of the third plant with an investment of 275 million reais in 2024, which will increase the production capacity to 16.4% of the national demand.

Verde Agritech says it is awaiting approval from ANTT within the next few months.

“If permission is granted, a contract will subsequently be signed between ANTT and Verde allowing for private exploration of the railway. After that, the company will proceed with environmental and engineering surveys for this project,” the notice explains to the market.

The company, listed on the Toronto Stock Exchange, claims to be the company with the largest production capacity for the production of potassium for agriculture in Brazil and the first in the world to add microorganisms to mineral fertilizers.

(Reporting by Roberto Zamora)

tagreuters.com2022binary_LYNXMPEIB40XM-BASEIMAGE