Good morning,
Hello frugal.rock. Couple announcements published Monday and yesterday (23/11/22).
Of note, the following article written in the Townsville Daily Bulletin today, via New Corp Media, linked to Mondays company annoucement. This is of interest to rcw1. Not holding CXM at this time. Comments made by Port of Townsville Chief Operating Officer Drew Penny, would have been most welcomed by CXM shareholders!!!
International uncertainty caused by Russia’s war with Ukraine has prompted the first exports of phosphate rock from Townsville.
Tony Raggatt
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2 min read
November 24, 2022 - 6:00AM
Townsville Bulletin
https://www.couriermail.com.au/news.../509704c5e1d83a734aa7894d00ad05df#share-tools
The phosphate rock processing plant established by Centrex at Ardmore.
Vladimir Putin’s war on Ukraine is helping to establish a new industry in North Queensland and end Australia’s and New Zealand’s reliance on imported phosphate. ASX-listed Centrex has announced its first international shipment of phosphate rock from Townsville port to New Zealand which closely follows a shipment to an Australian customer. Supply chain disruption caused by Russia, which with Morocco is a key fertiliser supplier, has introduced uncertainty and seen phosphate rock prices triple to more than US$300 a tonne.
Centrex is the first of multiple players looking to capitalise on the big phosphate resources in north west Queensland and the Northern Territory formed by marine animals which died when an ancient inland sea dried up.
The company’s demonstration plant has the capacity to produce up to 240,000 tonnes of phosphate rock a year and is a precursor to a larger 800,000 tonnes per annum plant. In a statement, Centrex CEO Robert Mencel said Australia and New Zealand imported a million tonnes of high-grade phosphate rock each year, mainly from Africa.
Centrex CEO Robert Mencel stands in front of the phosphate rock processing plants at Ardmore near Mount Isa.
“Like Australia, New Zealand requires surety of supply because domestic food security is not
something to be gambled with,” Mr Mencel said. The first shipment of 5000 tonnes left Townsville last weekend to New Zealand agricultural cooperative Ravensdown.
Ravensdown will use the phosphate rock to make fertiliser like super phosphate. Ravensdown supply chain general manager Mike Whitty said initial assessments of the rock had been promising. “We believe Ardmore phosphate rock has the potential to form a part of Ravensdown’s nutrient offering, helping to firm up local supply of high-quality superphosphate for New Zealand farmers and growers,” Mr Whitty said. “If the last few years have proven anything, it’s the value of having options. “As a co-operative, it’s our job to identify and manage those risks on behalf of our farmer and grower shareholders. We’re committed to ensuring they have ongoing access to the essential nutrients needed to run their businesses.”
Port of Townsville Chief Operating Officer Drew Penny said Centrex’s first bulk shipment of phosphate from the port last month was the first bulk handling in Australia. “Centrex’s enterprise has the potential to become both an import replacement business and a new export business for Australia,” Mr Penny said. “The Port of Townsville has a two common user berths that are suited to bulk export of mining and mineral products.”
Mr Mencel said soaring fertiliser prices brought on by supply chain disruptions had become a major concern to the domestic agricultural sector. He said most of the phosphate rock to be mined at Ardmore would be for the commercial fertiliser production industry.
The company is in discussions with other potential fertiliser customers and has negotiated first right for offtake agreements for all of the production for the first three years of the project.