Verde Potash secures Brazil funding for mine, shares jump
A Brazilian government program to fund agriculture-related projects has chosen to finance a potash mine to be developed in Brazil by Verde Potash PLC, the company said this week.
Details and amounts of funding were not released, but Verde Potash Chief Executive Cristiano Veloso said in an interview that the Inova Agro financing program includes a combination of debt at subsidized interest rates, equity investment and non-reimbursable grants.
Verde's Cerrado Verde project would produce much-needed potash fertilizer mainly for use within Brazil.
Veloso said he is "extremely confident" the project in Minas Gerais can go ahead.
The project is awaiting an environmental license from Brazil and Veloso declined to predict when that might occur.
Verde shares jumped 55 percent in Toronto on Tuesday to 87 Canadian cents, following a rise of 47 percent last week.
Brazil, which is expected to surpass the U.S. as the world's largest soybean producer this year, imports about 90 percent of its potash. Despite also being the world's largest producer of coffee and orange juice and a growing producer of corn and wheat, its soils are low in many essential nutrients and require large amounts of fertilizer.
Inova Agro is an initiative of the Brazilian government that coordinates the resources of the state-owned Brazilian Development Bank (BNDES) and Financing Agency for Studies and Projects (FINEP).
- Monthly fertilizer prices: Comparing 2014 through 2009
- USDA releases April water supply forecast for the West
- Know your enemy: The importance of weed identification
- Most Texas farmers have corn in the ground
- Mosaic to acquire ADM's Brazil, Paraguay fertilizer business
- Agriculture gives unmanned aerial vehicles a new purpose
- Commentary: Blame anti-GMO groups for deaths
- Julie Borlaug says biotech is necessary in fight against hunger
- What does “sustainable” food and agriculture really mean?
- Climate change will reduce crop yields sooner than we thought
- Ohio bill to require certification to apply fertilizer
- Carbon-dioxide hurts nitrogen assimilation by plants