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Harvest Minerals' Arapua fertiliser project awarded full mining permit

09:55, 27th February 2020
Francesca Morgan
Company News
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Brazilian remineraliser producer, Harvest Minerals (AIM:HMI) FOLLOW, has been awarded a full mining permit for the company’s 100% owned Arapua Fertiliser Project in Brazil granting full tenure at the site.

The AIM-listed business said that it had now completed the final step to fully permit the mine which has been operating since December 2016.

“As we expect to reach profitability this year and have strong growth plans to build production, it was prudent to push for the award of the full mining permit which gives us full tenure over the Project,” said Brian McMaster, Executive Chairman of Harvest.

A full environmental permit that was issued by the Brazilian Environmental Department in November 2019 allowed Harvest to mine and process up to 400 kilotonnes-per-annum of ore.

Harvest noted that 400Ktpa was above the current processing capacity but that both the environmental permit capacity and production capacity can be increased as demand requires.

Shares in Harvest Minerals were trading 9.74% higher at 4.225p during Thursday trading.

HMI price chart

Under the terms of the original sale and purchase agreement, Harvest will now pay US$1m to the original vendors of the asset on “commercial production” being achieved at Arapua.

The payment will be made from the group’s existing cash position and a net smelter return of 2% will continue to be paid to the vendors the statement added.

“When we started Arapua we had limited ideas on its economic viability,” said McMaster.

He added, “Since then we have not only built and fully permitted an operating mine and processing facility but developed an entirely new remineraliser and fertiliser, and established a growing market for it.”

Arapua consists of a fully permitted mine, production and storage facilities able to produce and deliver Harvest’s organic fertiliser product KPFértil to customers.

KPFértil is distinct from most fertilisers as it doesn’t require complex processing or chemical alteration and instead can be applied directly to crops.

Follow News & Updates from Harvest Minerals here: FOLLOW

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