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Chatham Rock Phosphate Limited (TSXV: “NZP”, NZX: “CRP” and “3GRE” (Frankfurt) or the “Company”) is pleased to an update on progress at the Korella North Mine.
As earlier advised, the Queensland Treasury is in the process of assessing the Environmental Security Bond for the Korella Mine and this is now expected to be completed by end January 2025. Until and unless the Bond is posted, no on-site activities can commence. With this period coinciding with part of the wet season this will not of itself limit on-site activities.
Commencement of Mining
The first on-site operation will be the opening of costeans to fully expose the 22m thick Monastery Creek Phosphate Member to allow ground conditions to be fully assessed, and to enable the individual plies to be analysed using a handheld XRF.
The about to be nominated local mining contractor has visited the site and determined that he will use a 50-tonne hydraulic excavator to dig the costeans. Selective mining of the individual plies will enable the immediate mining and screening to produce a saleable product. Ex-mine sales of simply screened fine soft rock phosphate into the domestic market will generate immediate cash flow.
Phosphate Market Developments
Chatham has in the last weeks fielded an increasing number of enquiries for supply of lump phosphate, with Vietnam now joining China and Malaysia seeking immediate supply.
Lump phosphate is used in the production of yellow phosphorus that is the precursor for thermal grade phosphoric acid used in battery production. This premium product to be produced at Korella North has its value further enhanced since Korella phosphate has extremely low arsenic values, being on average less than 1 ppm.
The Korella North mine has the capability to produce the required product by a simple screening operation.
Transport Logistics
Chatham has since September 2023 studied the potential to export Korella phosphate through the Port of Karumba, rather than Port of Townsville.
The potential for Korella lump rock phosphate exports through a facility in the Port of Karumba in the Gulf of Carpentaria is now under intensive study.
Marketing
Chatham has commenced market development in Indonesia – Australia’s nearest and largest market for crushed rock phosphate.
The signing of a representative agreement with leading Indonesian company Indevco is the first step in our market development process. Exports through Karumba will provide shipping advantages for Indonesian fertilizer producers currently importing phosphate from overseas and local sources.
Shareholders will be kept informed of progress at the Korella North Mine and the facility for export of lump phosphate at Karumba.
About Indevco
PT Indevco Internus (Indevco) is a leading Indonesian company established in 1993 with experience in the import of raw materials for fertiliser production in Indonesia and with current business activities including export of fertilisers manufactured by Pupuk Indonesia.
Written by:
Chris Castle
President and Chief Executive Officer
Chatham Rock Phosphate Limited
64 21 55 81 85 or chris@crpl.co.nz
Statements about the Company’s future expectations and all other statements in this media release other than historical facts are “forward looking statements”. Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.
Neither the Exchange, its Regulation Service Provider (as that term is defined under the policies of the Exchange), or New Zealand Exchange Limited has in any way passed upon the merits of the above descried transaction and has neither approved nor disapproved of the contents of this media release.
