The project is expected to contribute to a more stable supply of phosphate rock to local markets in Australia and New Zealand as well as export markets further afield such as India and Indonesia.

Australia, like many other Asia-Pacific nations, has long been reliant on phosphate rock imports for production of single super phosphate (SSP).

With a number of shipments detained in the past year from Morocco, the world’s biggest exporter over mining in the disputed Western Sahara region, security of supply has been brought to the spotlight.

Centrex acquired Ardmore from a fertiliser major. It is a high-grade resource near the city of Mount Isa in north west Queensland and one of the few remaining undeveloped high-grade phosphate rock deposits in the world.

The ASX-listed company also today announced a maiden Mineral Resource for the project of 12 million tonnes of direct shipping grade ore (29% P2O5).

Centrex CEO Ben Hammond said that revenue generation will be expedited due to the geology and grade of the ore: “The phosphorate rock deposit at Ardmore is near surface, flat lying, and doesn’t require blasting so mining will be via a cheap open cut operation,” explained Mr Hammond.

Centrex intends to allocate a third of Ardmore’s product to Australia and New Zealand whilst the balance will be channelled to export markets, primarily India and Indonesia. India, the world’s largest importer, has very little natural phosphate rock of its own. Indonesia faces similar challenges and will also be targeted with major fertiliser plant expansions planned in that country over the coming years.

“North Africa and the Middle East are the most prolific exporters of phosphate but we will have a significant freight advantage over them to our domestic and regional markets,” added Mr Hammond.

“The high-grade and coarse nature of phosphate rock at Ardmore means that our processing costs will be lower than many of our competitors that rely on significant processing to reach exportable grade levels.”

Centrex has commenced further drilling to expand the current Mineral Resource, as well as engineering feasibility and environmental studies. These will also assist in determining the best development option – direct ship-ore or a higher value concentrated product.