Verde AgriTech announces results of pre-feasibility study for Brazil project
HOUSTON (ICIS)–Verde AgriTech has released the results of its pre-feasibility study for the Cerrado Verde project in Brazil, which outlines plans for a third plant at the site and replaces the prior study completed in December 2017.
Currently Verde operates Plant 1 with a capacity of 600,000 tonnes per year with Plant 2 on track for commissioning in Q3 with an additional annual capacity of 2.4m tonnes.
Plant 3 is expected to add 10m tonnes/year at a cost of $52.77m with construction currently planned to begin in 2023.
Verde said the cost of Plant 3 is expected to be covered by accumulated cashflow generated by sales up to Q2 2023, without need for equity or debt financing.
The study presented Verde with three distinct production scenarios with the first being annual production of 10m tonnes/year, which would represent 13.51% of the Brazilian potash market demand projected for 2025.
The second case was for output of 23m tonnes, which would be an estimated 31.07% of the Brazilian demand projected for 2025.
The last scenario would see there be annual production of 50m tonnes, which would be approximately 54.97% of the estimated market demand for 2030.
The mineral resource from this study remains unchanged from the 2017 version with there being a combined measured and indicated mineral resource of 1.47bn tonnes at 9.28% potash grade and an inferred mineral resource of 1.85bn tonnes at 8.60% potash grade.
Currently Brazil ranks second in the world for potash consumption but is first in terms of imports as the country relies on inbound shipments for more than 96% of its potash needs.