By Rod Nickel
Feb 18 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 on Tuesday.
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
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