PERTH (miningweekly.com) – ASX-listed Verdant Minerals has signed a non-binding offtake memorandum of understanding (MoU) for the potential sale of 100 000 t/y of rock concentrate from its Ammaroo phosphate project, in the Northern Territory.
The MoU was inked with fertiliser manufacturer and marketer Ameropa Australia.
“The establishment of an offtake MoU for supply to one of Australia’s leading fertiliser manufacturers and marketers is another important step in the process of establishing firm markets for Ammaroo phosphate rock,” said Verdant MD Chris Tziolis.
“Now that the feasibility study is complete and the process to obtain a licence to operate in its final phases, product analysis and discussions also continue with a number of other buyers of phosphate rock in the Asia Pacific region with a view of working towards other offtake MoUs and binding agreements.”
A recent feasibility study into Ammaroo proved the project to be technically feasible, and studied a Stage 1 development to produce one-million tonnes a year of phosphate rock concentrate, which would be replicated during year five, taking production to two-million tonnes a year of rock concentrate from year six until the end of the project’s 20-year mine life.
The Stage 1 development is expected to require a capital investment of A$368-million, while the Stage 2 development will require a further A$200-million investment.