Fertilizer producer Verde Agritech informed this Monday (5) that it requested authorization from the National Land Transport Agency (ANTT) for the construction of a railway branch in the interior of Minas Gerais, in a project that may require more than half a billion euros. dollars in investments and should be taken over by a railway operator, according to a statement released to the market.
The company’s project provides for a route between the company’s facilities, in São Gotardo, and the city of Ibiá, in the Triângulo Mineiro region, to transport the production of potassium fertilizers.
“By connecting Verde’s potash mines, Brazil’s largest known reserve, to its main consumer centers, the railroad will give farmers access to an even more substantial volume of product,” commented Verde Agritech founder and CEO, Cristiano Veloso , in note.
According to the company, the branch will be connected to a railway network that connects 7 states and the Federal District, part of which is managed by Ferrovia Centro Atlântica (FCA).
“The FCA railroads are the main route between the Southeast, Northeast and Midwest regions of Brazil”, highlights the statement.
The company currently has two plants in operation, in São Gotardo and Matutina, with annual production capacity of up to 3 million tons of fertilizers.
This year, the construction of the third plant, with investments of R$ 275 million, was announced by the company to be completed in 2024, increasing production capacity to 16.4% of national demand.
Verde Agritech says it expects authorization from the ANTT in the coming months.
“If the authorization is granted, a contract will be subsequently signed between ANTT and Verde, authorizing the exploration of the railroad under a private regime. After that, the company will start the environmental and engineering studies for this project”, explains the notice to the market.
The company, listed on the Toronto Stock Exchange, claims to be the company with the greatest potash production capacity for agriculture in Brazil and the first in the world to add microorganisms to mineral fertilizers.
Source: CNN Brasil
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