Phosphate mining company Aguia has identified substantial capital expenditure (capex) savings at the Tres Estrada project, in Brazil, by opting to use a pre-existing treatment plant.
The company, which is listed on the ASX, is in negotiations for a lease or purchase agreement on an existing plant and expects to finalise terms this month.
The successful closure will negate the need for the development of processing operations at Tres Estradas, reducing capex by 25% on the bankable feasibility study (BFS) estimate of A$26.2-million.
“Aguia’s phosphate assets in Brazil offer the potential for a long-life operation, as already demonstrated by previously released BFS studies. The ability to minimise upfront capital costs through the use of pre-existing treatment facilities could greatly improve the economics of the operation and enable a fast-tracking route to positive cashflow,” said executive chairperson Warwick Grigor.
The Tres Estradas project is based on the production of an organic phosphate fertiliser by the mining and processing of the saprolite ore. This soft, oxidised material is free-digging and is expected to enable the production of organic phosphate fertiliser with grades of 8% to 10% phosphoros pentoxide.
Tres Estradas is expected to produce 300 000 t/y saleable product, operating for 18 years.
Aguia has started drilling a second phosphate project, Mato Grande, with the aim being to scale up its current resource base given the growing demand in the region.