Verde AgriTech unveils capex plan for Brazil potash project

Verde AgriTech, a Toronto-based fertilizer exploration and development company, unveiled a capex expansion plan for its Cerrado Verde potash project in Brazil's Minas Gerais state.

The company already operates plant 1 with a capacity of 600,000t/y and plant 2 is on track for commissioning in Q3 with an additional capacity of 2.4Mt/y.

The plan is to construct plant 3 next year to add 10Mt/y, which will require capex of US$52.8mn, Verde AgriTech said in a press release.

According to the pre-feasibility study for plant 3, the capex amount is expected to be covered by accumulated cash flow, without the need for equity or debt financing.

Projects involving raw materials that are linked with the production of fertilizers are expected to grow in Brazil as the government and the mining industry are working to reduce the country’s high dependence on imports. 

Mining companies are planning to invest US$40.4bn in 2022-26, with US$5.75bn going to projects associated with fertilizers, according to Brazilian mining association Ibram. 

Brazil ranks second in global potash demand and is the world’s largest importer, currently depending on external sources for over 96% of its potash needs, according to Verde AgriTech.