Ardmore phosphate mine on growth trajectory

Centrex has the wheels in motion to triple production over the next 12 months at its Ardmore phosphate mine in North-West Queensland. The company has set out its pathway to a targeted output of 625,000 tonnes per annum of beneficiated phosphate rock under a plan involving an outlay of about $31 million. Stage 1.5 is framed as an interim step towards 800ktpa phosphate output (Stage 2) with significant synergies with that stage. While the plan is subject to funding, managing director Robert Mencel said Centrex was already going down that path and hoped to be producing at a rate above half a million tonnes per annum by January 2024. "A lot of engineering work has already been done for it. We are spending some money towards it already and really, for us, it's being driven to a great extent by how quickly Aurizon - our logistics partner - can ramp up their capacity," Mr Mencel said. He said the company was about to call for expressions of interest for construction of a new tailings facility for the expanded operation. And with the on-site workforce set to increase by 30-odd people to about 70, it is looking at either increasing the accommodation it is drawing on in Dajarra or building a camp. Centrex managing director Robert Mencel. The Stage 1.5 plan will see Ardmore achieve 80 per cent of the production target outlined in its definitive feasibility study at 40 per cent of the DFS capital cost. Centrex subsidiary Agriflex, which is responsible for the Ardmore operations, achieved its first international export last month with a 5000-tonne shipment to New Zealand agricultural cooperative Ravensdown. Mr Mencel said the company was seeing overwhelming demand for its product. "We've really allocated production for the first three years to various customers. I'm in the process of writing those long-term contracts," he said. "We think they'll all be in place early in the new year. "Outside of that, we have customer interest all the way from the sub-continent through to North Asia." The current mineral reserve for the project is 10.1 million tonnes at 30.2 per cent phosphorus pentoxide and Mr Mencel said the company anticipated a mine life of 10 to 15 years. "Grade is king for a lot of this," he said. "There's a lot of phosphate in the area, but if you really be viable you do need a high-grade deposit. And we are fortunate, we've got one of the highest grade deposits in Australia."

Ardmore phosphate mine on growth trajectory

Industry Queensland

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