Verde Agritech PLC (TSE:NPK) said assembling its processing plant in the state of Minas Gerais, Brazil, had begun and that the site was on schedule and on budget to be fully operational in early third quarter this year.
The facility is due to produce 45 tons per hour of Super Greensand - the firm's multi-nutrient fertiliser product, and the total cost is US$500,000.
"The markets in Brazil and US have warmly welcomed our Super Greensand, as we expected, given the long series of agronomic tests conducted on the product," said Cristiano Veloso, the president and chief executive at Verde.
"Now we are working hard to ensure that we can increase production as soon as possible.
"Our first wholly owned plant will ensure greater supplies at a lower per ton cost, so we are excited to see that work is progressing along the tight schedule we established."
In November, 2017 the company issued a pre-feasibility study (PFS) for its project, which showed an impressive post-tax net present value discounted at 8% of US$ 1.98bn and internal rate of return (IRR) of 290%.
In March this year, Verde announced a turnkey agreement for the construction of the plant.
Super Greensand contains 68 minerals and trace elements, including potassium, iron, magnesium and manganese.
Unlike most potassium fertilizers, the product has no additives, no salt and no chlorine.