Jun 18 2015
DuSolo Fertilizers Inc., ("DuSolo" or "the Company") has reached its full production capacity of 20,000 tonnes per month at its Bomfim Processing Plant (the "Plant") where the Company manufactures its Direct Application Natural Fertilizer ("DANF") product.
During the current planting season, DuSolo intends to produce at least 100,000 tonnes of DANF product, the maximum amount currently allowed by the mining permits the Company has in place. Earlier this year, DuSolo submitted an application to double its allowable mining capacity to 200,000 tonnes per year.
This year's planting season began in late May, and is expected to go to late fall.
"This will be the first full planting season in which DuSolo will be producing fertilizers. At our current production rate, we are able to deliver on all sales contracts currently in place," said Eran Friedlander, President and CEO of DuSolo. "With the anticipated increased capacity, the Company will be in a position to enter into additional sales contracts this year, thereby addressing the growing demand for DANF in the region."
The Company has re-commenced at surface mining operations at the Santiago target and is currently excavating around 1,000 tonnes per day.
DANF production restarted in late May, at which time DuSolo began ramping up its operations. The Plant is now running 5.5 days a week with two shifts working a total of 20 hours per day. Approximately 900 tonnes of DANF is now being produced daily, totaling 20,000 tonnes per month.
DuSolo also recently completed the construction of an on site laboratory in order to test and ensure the quality of its 12%, 15% and 18% P2O5 DANF products.
In anticipation of receiving permits to increase its production rate, DuSolo is installing upgrades at the Plant. The longer than expected rainy season and infrastructure-related issues prevented the Company from carrying out its initial plan to have the additional production capacity in place by the original date of March 2015.
DuSolo has now begun installing the three hammer mills, additional conveyor belts and electrical infrastructure upgrades necessary to increase its annual production capacity to 160,000 tonnes per year. Total capital expenditure is expected to be C$315,000 and will take approximately 2 months to complete.
ABOUT DIRECT APPLICATION NATURAL FERTILIZER
DANF is an environmentally friendly, natural fertilizer derived from phosphate-rich rock types. It can be used on its own or in combination with other phosphate-based fertilizers in order to increase crop yields. Farmers in Brazil's Cerrado region prefer using DANF on their crops, however local supply is limited and the alternative, imported phosrock, is highly-priced due to transportation and other importation costs. By being the only DANF producer within a 500 km radius of its production facility, DuSolo is able to meet the needs of farmers in the area by providing a premium product at competitive prices.
DuSolo produces DANF during Brazil's planting season, which typically goes from April to October. During the rainy season, November to March, the Company intends to carry out care and maintenance at the Plant in advance of the next planting season.
DuSolo Fertilizers Inc. (TSX VENTURE:DSF)(OTC PINK:ELGSF)(FRANKFURT:E6R) is a producer and distributor of phosphate based fertilizers within the Cerrado region of Brazil, one of the fasting growing agricultural producing regions globally. As part of a nationwide effort, incentivized by the government, DuSolo's goal is to increase the supply of domestically produced fertilizers and help the region achieve agricultural self-sufficiency.
On behalf of the Board of Directors DuSolo Fertilizers Inc.
Eran Friedlander, President and CEO