Harvest Minerals Limited (LON:HMI) has started mining at the Maximus prospect on its Arapua fertiliser project in Brazil after the award of a trial permit.
The company has also signed a letter of intent with local coffee company Veloso to supply it with 45Kt of its KPfertil fertiliser product through 2017.
Veloso will pay around US$60 per tonne at current exchange rates.
Brian McMaster, Harvest’s chief executive, said: "All the test work we have carried out on KPfértil over the past year has continuously surpassed our expectations.
“As well as being a K, P, Ca and Mg multi-nutrient product, KPfértil has many additional properties that enhance its suitability as a re-mineraliser and fertilizer.
“While we continue with the product registration process and testwork with the Ministry of Agriculture, the work we have carried out with Santinato & Santinato Cafés and Veloso has convinced them to sign this LOI.”
He added that with the award of the trial permit Harvest had moved from field mapping to first production from the Maximus prospect within a year, which was an exceptional achievement.
“We should receive the remaining drill results from the second drilling programme at Maximus before the end of the year, which should enable us to increase the size of the current resource to support an increased mine life and production rate, “ he added.