Centrex Metals Limited has signed a deal to potentially export 40 per cent of the planned phosphate rock production from its Ardmore site in North West Queensland to India.
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The non-binding memorandum of understanding is with Indian listed company Gujarat State Fertiliser and Chemicals (GSFC).
GSFC is an Indian fertiliser and chemical manufacturer listed on the National Stock Exchange of India.
Under the terms of the MOU Centrex will provide product samples to GSFC’s selected technology providers for its new large-scale phosphoric acid plant for their trial and acceptance.
Based on the outcome of testing by the technology supplier GSFC and Centrex intend to finalise a sale (off-take) agreement for the supply of about 300,000 tonnes (dry basis) of phosphate rock from Ardmore over its proposed 10-year mine life.
This represents close to 40 per cent of Centrex’s proposed output from the project.
Centrex Metals CEO Ben Hammond said Ardmore was established with the view to supplying both local and international markets and that demand for ‘clean’ phosphate is high.
“Signing an MOU with GSFC so soon after sending our small-scale product samples to customers shows the high-demand for the premium grade ultra-low cadmium product we propose to produce from Ardmore,” Mr Hammond said.
Cadmium is a toxic heavy metal that can be concentrated in crops and cause health problems. There is increasing pressure on fertiliser manufacturers to use low cadmium phosphate sources.
Ardmore, one of the few remaining undeveloped high-grade phosphate rock deposits in the world, has a cadmium level of around 1 to 2 ppm which is very low by international standards.
“The potential already to sell almost 40 per cent of our proposed output to GSFC over the mine life should give the market further confidence in what Centrex believes is a straight forward and simple mine development with a relatively low capital cost,” Mr Hammond said.
The $60m Ardmore operation is near Dajarra.