Fertile market as Ardmore phosphate mine cranks up

Agriflex has sewn up deals accounting for 100 per cent of the Ardmore mine's phosphate production over three years as it tracks towards first export shipments. Major agri-business Ameropa Australia has signed up for a trial shipment of 5000 wet tonnes of beneficiated phosphate rock from the Centrex subsidiary. The deal includes a first right of refusal to purchase 10 per cent of the Ardmore mine’s annual production for the first three years. “Agriflex is proud to be entering into this agreement with Ameropa, a well respected and world-classcompany, at the same time helping to improve Australia’s supply security of phosphate rock," Centrex managing director Robert Mencel said. "With the signing of this agreement, the Ardmore project has 100 per cent of its first three years of production allocated to major customers in Australia, New Zealand and Asia.” Ameropa's 5000 wet tonne shipment has been sold on a free-on-board basis, to be loaded Townsville in November with pricing to be finalised six weeks prior. It follows a deal in May with Ballance Agri-Nutrients covering a 5000WT trial shipment to be loaded in September and first right of refusal to purchase 20 per cent of the Ardmore mine’s annual production for the first three years In an update this week on progress at Ardmore, Centrex said the mining contractor had mobilised to site in April to recommence stripping of overburden and ore mining. Mining is ongoing at the North-West Queensland site at a production rate of 27,000t of ore per month. The crushing circuit is producing a refined product for both the direct application phosphate rock marketand feed for the Ardmore beneficiation plant. Centrex said all previously-outstanding non-process infrastructure had been completed on schedule and budget. This work included the installation of onsite power generation and distribution, mine site potable and nonpotable water supply, construction of offices and workshop, an initial tailings dam cell, construction ofpermanent service roads and additional accommodation in Dajarra. The production rate is expected to progressively ramp-up over the next six months as crushing and beneficiation plant fine-tuning and optimisation is completed. Agriflex’s logistics contractor Aurizon is expected to commence transporting the product to Townsville inearly August 2022 with the first export shipment planned for early September. Ardmore beneficiated product. An initial transport rate of 10,000t per month is scheduled, progressively increasing up to 20,000t per month by the end of Jan 2023. “First production of beneficiated Ardmore ore is a major milestone for the company," Mr Mencel said. "To deliver the project on budget and schedule is a great achievement. I thank all the contractors involved and I’m proud of the Centrex team and what it has achieved.” The site comes online at a time when the North Africa Phosphate Rock benchmark price is sitting at its highest levels since early 2013. The company’s updated Definitive Feasibility Study (DFS) for the Ardmore project in August 2021 used a benchmark phosphate price of $US125 per tonne . The current $US255 per tonne benchmark phosphate price represents a 104 per cent increase on that level.

Fertile market as Ardmore phosphate mine cranks up

Industry Queensland

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