Verde AgriTech Receives Green Light on Railway Line for 50Mtpy Product Transport

Verde AgriTech received clearance from Brazil’s National Land Transport Agency (ANTT) and the Ministry of Infrastructure to construct a railway branch. The approved line aims to transport up to 50 million tonnes annually of Verde’s multi-nutrient potassium products, namely BAKS and K Forte. The new railway will seamlessly connect Verde’s manufacturing sites to the vast Ferrovia Centro Atlântica (FCA) railway system, bridging the municipalities of São Gotardo and Ibiá in the state of Minas Gerais. As Brazil’s leading railroad network, the FCA connects seven states and the Federal District, facilitating crucial freight movement across Brazil’s Southeast, Northeast, and Midwest regions.

Verde develops Brazil’s largest identified potash deposit, with resources standing at an impressive 3.32 billion tonnes. Cristiano Veloso, Founder and CEO of Verde, remarked on the significance of this railway. “Linking our facilities to Brazil’s primary potash consumption centers will grant farmers access to a consistent and amplified product supply. This move aligns with Verde’s twin objectives of reducing Brazil’s reliance on imported potash and our dedication to capturing up to 6.0 million tonnes of carbon dioxide annually.”

Following this authorization, ANTT and Verde are anticipated to finalize a contract permitting private exploration of the Railway. Subsequently, Verde will commence the project’s environmental and engineering assessments. Last year’s Pre-Feasibility Study (PFS) by Verde indicated the potential of using road haulage for distributing up to 23Mtpy of products. Logistics of production beyond this volume necessitate a railway spur.

Railway construction between São Gotardo and Ibiá, ensuring transportation for up to 50Mtpy of products, would require investments in the amount of US$283.02 million. The overall investments in the railroad construction are projected at US$553.99 million.

Following successful clearance for the project Verde AgriTech began talks regarding potential technical partnerships to aid in railway development and logistics operations.