NZX-LISTED Chatham Rock Phosphate has turned its attention to shipping phosphate from its Korella North Mine through the Port of Karumba, having previously favoured Townsville.
CRP this week said it had met with Carpentaria Shire Council, Gulf-Savannah Development Inc and Ports North as well as local contractors to discuss the practical aspects of exporting through Karumba. “Planning is now progressing with Ports North while all requirements set by Carpentaria Shire Council and TMR are now being defined,” the company said.
While the Korella North Mine is initially designed to sell into the domestic market, the rapidly developing market in China and Vietnam for lump phosphate (for manufacture of yellow phosphorus) has provided the impetus to CRP’s plans for export of lump phosphate through Karumba.
The Korella North mine has the capability to produce the required product sizes by means of a simple screening operation, CRP says.
Earlier in 2024 Chatham commenced market development in Indonesia, which is Australia’s nearest and potentially the largest market for granular rock phosphate. This has culminated in the signing of a representative agreement with leading Indonesian trading company Indevco who have already identified potential customers.
Exports through Karumba will provide shipping advantages for Indonesian fertilizer producers currently importing phosphate from elsewhere overseas, the companies say.
CRP says lump phosphate is used in the production of yellow phosphorus that is the precursor for thermal grade phosphoric acid used in battery production. This premium product to be produced at Korella North has its value further enhanced since Korella phosphate has extremely low arsenic values, being on average less than 1 ppm.
Notwithstanding the above, on 20 January CRP announced it had agreed in principle to sell to an arm’s-length Australian entity (the Marshall Group) the four mining and exploration leases in respect of Korella North and South properties currently held by 100% owned subsidiary Avenir Makatea Pty Limited (AML).
The sale price includes a cash payment of $4.1 million on transfer of the leases to the acquiring company and a royalty to be paid to AML at a rate of $10 per tonne for the first 0.19 million tonnes of production. A further royalty of $1 will be paid per tonne to AML on all production commencing after the completion of the first 0.19 million tonnes up until 31 March 2040.
The transactions are conditional on a successful outcome in respect of a due diligence process to be undertaken by the proposed purchaser which is currently underway and expected to be completed on or before 31 March 2025.
