Fertoz finds buyer for stockpiled phosphate
PERTH (miningweekly.com) – Phosphate developer Fertoz has inked a sales and supply agreement with international fertiliser company Humic Growth Solutions, under which Fertoz phosphates will be blended with Humic products.
The companies are anticipating selling between 35 000 t and 40 000 t of new value-added blended fertiliser products in the first two years of the agreement, combining rock phosphate and humates in powder and granular form.
In the 2019 financial year, the two companies are forecasting value-added product sales of between 10 000 t and 12 000, and between 25 000 t and 28 000 t in 2020, with demand expected to increase further in 2021.
Humic has a processing facility some 300 km from the 100 000 t rock phosphate stockpile which Fertoz secured in October this year.
Fertoz executive chairperson Pat Avery said on Thursday that the deal with Humic was a solid strategic fit for the company, considering the location of Humic’s processing facility.
“Blended humates and phosphates are high value fertilisers so freight costs are not a major consideration, meaning we will be able to sell the blended product right across the US and Canada.”
Fertoz said that the sales and supply agreement also incorporated a memorandum of understanding to progress towards a formal joint venture, for an initial ten-year duration, that would incorporate joint marketing and branding, joint sales incentives and regular cost and volume reviews.
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