Verde will reach 3 million tonnes of potash production capacity in 2022, Canadian Business Journal

Belo Horizonte, Brazil, March 3, 2022 (GLOBE NEWSWIRE) — Verde AgriTech Plc (TSX: “NPK”) (OTCQB: “AMHPF”) (“Verde” or “society”) Announced that it has begun work to double the capacity of the second production facility currently under construction (“Plant 2 ”). Verde will also maintain increased production at Plant 2 and upgrade its local infrastructure to enable future Plant 3 (“Expansion Plan”). Plant 2 is expected to begin production in the third quarter of 2022 and the expanded capacity will be operational at the beginning of the fourth quarter of 2022. Verde plans to begin construction of Plant 3 in 2023, subject to a permit.

In the face of recent geopolitical events involving Russia and Ukraine, the secondary impact of economic sanctions on Russia and its ally Belarus on the supply of potash to Brazil, Verde’s board of directors (board”) Unanimously approved an accelerated investment program to maintain the expansion plan. As disclosed in a press release released on September 27, 2021, Plant 2 will be ready for commercial production of Verde’s polynutrient potassium products BAKS® and KForte® by the third quarter of 2022. It is proceeding smoothly. It has an initial operating capacity of 1.2 million tons (“tpy”) annually. At the same time, we work on expansion plans for two main purposes.

  1. By the fourth quarter of 2022, we will expand the operational capacity of Plant 2 from 1,200,000 to 2,400,000 tpy.
  2. Upgrade your local infrastructure to maintain plant 2 logistics by adding capacity to enable future plant 3.

By the fourth quarter of 2022, with the expansion of Plant 2, Verde expects to increase its overall capacity to 3,000,000 tpy and become Brazil’s largest producer of potash. On February 10, 2022, we announced that we had acquired an additional 2,500,000 tpy of mining rights, bringing the total capacity currently allowed to be 2,833,000 tpy.

“For the past few months, we have tracked the heightened tensions in Ukraine and have become worried about the suffering of innocent people involved in this geopolitical conflict, which has been applied to Belarus and Russia. Given the latest sanctions, we are keenly aware of the contingent implications for Brazil’s agriculture if the supply of potash is cut off. We are also concerned about global food shortages. The supply of fertilizer is cut off. If so, that may be unavoidable, “commented Cristiano Veroso, founder, president and chief executive officer of Verde.

Capital spending

The Board of Directors has approved an investment of R $ 51 million in Brazilian Real (“R $”) Fund the expansion plan in addition to the previously approved R $ 22 million for the construction of Plant 2.

We expect to fund the expansion plan through a combination of future cash flows and debt financing backed by future sales contracts.

Impact on the Potash market

Brazil ranks second in world potash consumption and first in imports. The country depends on imports for more than 96% of its potash needs. Verde’s potash production in Brazil is strategic for the development of a domestic supply that will help reduce its reliance on imported fertilizers and meet Brazil’s demand for food production, consumption and exports. This strategy is especially important in the light of recent geopolitical events that directly and indirectly involve two of the world’s largest producers of potash, Russia and Belarus.

Brazil’s potash consumption in 2021 (K2O) was 7.92 million1, This is equivalent to 79.2 million tonnes of Verde’s products. This market was 3.99 million tons (K).2O) 2010 and 2.71 million tons (K)2O) 20002Reflects Brazil’s growing agricultural production.

About VerdeAgriTech

Verde is an agricultural technology company that produces fertilizer. Our aim is to improve the health of all people and the planet. By naturally rooting our solutions, we make agriculture healthier, more productive and more profitable.

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A word of caution and a statement about the future outlook

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities law. increase. Attention Language and forward-looking statements can be accessed from this link.

For more information, please contact:

Cristiano da SiltoFounder, Chairman and Chief Executive Officer

Tel: +55 (31) 3245 0205; Email: | |

1 Source: State of São Paulo Agricultural Fertilizer and Orthodontic Industry Union (“SIACESP”, Sindicatoda Indústriade Fertilizantese Corretivos Agropecuários, without Estado de São Paulo).
2 Source: Brazil’s potash consumption, National Fertilizer Dissemination Association Statistical Yearbook (from “ANDA”, Associação Nacionalpara Difusão de Adubos).

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Verde will reach 3 million tonnes of potash production capacity in 2022, Canadian Business Journal

Source link Verde will reach 3 million tonnes of potash production capacity in 2022, Canadian Business Journal

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