Challenges facing burgeoning phosphate industry

The earls of three phosphate provinces in North-West Queensland recently presented detail on their projects to an eager crowd in Mount Isa. Centrex’s Ardmore project is the most advanced, having started railing product to Port of Townsville in advance of a number of trial shipments of high-grade phosphate rock starting in this month (September). Chatham Rock Phosphate ore samples. Chatham Rock Phosphate is completing a scoping study for a significant export project based on its Korella South tenements. Chatham is reporting market interest from Europe and Asia for product. The last of the proponents, North West Phosphate, has phosphate resources adjacent to Lady Loretta mine, namely Paradise North and South. North West Phosphate plans to export in the next two years. That project benefits from its proximity to mining leases with good access roads and associated in-situ infrastructure. The resources had distinct advantages, MITEZ chairman and Cloncurry Mayor Greg Campbell said. “The quality of phosphate from these projects is high grade, low cadmium and has fewer impurities,” Cr Campbell said. Related: Chatham strengthens hold on phosphate ground “Australia’s reliance on imports and the current booming price of phosphate due to strong international demand make these projects game-changing to the North West if we can get all three projects across the line. “We are talking around 3 to 5 million aggregated tonnes per annum in the early stages of these projects and the economic benefits from that along the corridor would be massive.” The logistics challenge The crowd was told the challenge was the logistics costs to domestic or international market. The issues posed by expensive below rail charges (and high energy costs) are particularly inhibitive in the case of a highly fluctuating commodity like phosphate. Queensland Rail doesn’t receive TSC funding for the Mount Isa Line and operates it on a commercial basis. At over 1000km long their access charges must at a minimum cover operating and capital renewal expenses. QR also can’t charge differentiated access charges making it hard for start-ups to indeed start up. Above rail providers argue that the most expensive track access charges in Australia are on the Mount Isa Line and that policy settings must change to allow a more flexible system for new players. A solution needed to be found, MITEZ chief executive officer Maria James said. “The world faces an imminent crisis in the supply of phosphate, a critical fertiliser that underpins the world’s food supply and for which there is no substitute,” Ms James said. “One of MITEZ’s top priorities is to advocate for improved freight handling efficiency and cost effectiveness on the Mount Isa line. “The Mount Isa Line is a critical piece of infrastructure linking the North West to the Port of Townsville and a major driver of economic activity along the corridor. “We need all stakeholders to work together to achieve growth, investment and prosperity in the region through these projects”. IMAGE at top of page: A road train arrives at Ardmore phosphate site near Dajarra south of Cloncurry.

Challenges facing burgeoning phosphate industry

Industry Queensland

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