Aguia Resources executive chairman Warwick Grigor said: “The processing facility has been undergoing a number of modification and maintenance activities in preparation to the handover of the site. The association with DB will be instrumental to a smooth path to production, enabling significant cost and time savings on earlier estimates.”
Aguia’s initially targeted 100,000 tonne per annum phosphate production rate is likely to only scratch the surface of Brazil’s fertiliser-hungry agriculture sector. Within a 200-kilometre radius of the plant, the company says it can only meet 10 per cent of local phosphate demand. Even across the broader Rio Grande do Sul region, Aguia’s expected contribution will fill less than 2 per cent of the market, leaving the door wide open for expansion.
Once the wheels are turning Aguia immediately plans to upgrade the plant. The company says surplus cash from early operations could bankroll a second dryer at the plant to triple output to 300,000 tonnes per annum by 2027.
Sales of Aguia’s “PAMPAFOS” product – a high-grade 12 per cent reactive phosphate – are slated to start pending final Ministry of Agriculture approvals. A second lower-grade 6.27 per cent phosphate product with added sulphur called “LAVRATTO” is planned for rollout in 2026 following agronomic testing.
Aguia is tipping its premium PAMPAFOS product to retail between A$200 and A$230 a tonne, offering a competitive, homegrown alternative to imported chemical phosphate, which it says is currently landing in Brazil at a hefty US$680 (A$1046) per tonne including freight costs.
The company believes its PAMPAFOS product will be a hit with Brazilian farmers, not just for its price edge, but for its proven punch in the paddock. The organic fertiliser has been put through its paces on crops worldwide over the past four years and is shaping up as a more effective alternative to traditional chemical blends.
Although the Três Estradas deposit will serve as the early feeder for Aguia’s plant, the medium-term plan is to switch to two closer phosphate deposits, Mato Grande and Passo Feio, which are both close to the plant and could save precious dollars on haulage costs.
Recent augur drilling on the northern end of Paso Feio, 20km from the processing facility, has already shown early promise after revealing a distinct carbonatite target, despite the lack of outcropping and will be shortly followed up with ground magnetic surveys.
A similar phosphate-bearing carbonatite at Mato Grande – only two kilometres from the plant – has also been identified and will be tested with the rotary truth teller once exploration permits have been issued.
Notably, Aguia has already locked in a seasoned distribution partner with an established sales force that is already on the ground and has more than 40 years of market experience across Brazil, Uruguay and the broader South American agricultural sector.
Aguia says the local presence and credibility of its distribution ally will play a crucial role in winning the hearts and minds and building community support to fast-track acceptance of its PAMPAFOS fertiliser.
With mining contracts signed, plant modifications underway and marketing set to launch within weeks, Aguia appears close to zeroing in on first fertiliser revenues to complement its Colombian gold play which itself is shaping up as a potential serious bottom line contributor.
With two potential walls of cash on the near horizon, the $61m market-capped Aguia is now very close to realising its strategic plan – and in record time too.
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