Chatham Provides Quarterly Update And Comments On World Food Safety And Security Issues

Listen to this article

Chatham Rock Phosphate Limited (TSXV: “NZP” and NZX: “CRP” or the “Company“) is pleased to provide a quarterly update.

World Food Safety & Security

We also wish to discuss the rapidly developing World food security and food safety concerns and Chatham’s strong strategic position in respect of both.

In a recent International Fertilizer Association announcement the importance of recognizing the fundamental importance of fertilizers in securing World food security was clearly spelt out.

With Russia and Belarus supplying 41% of the world supply of fertilizers and no end in sight of the conflict in Ukraine, the world is reassessing potential sources of secure and safe fertilizers.

As mined, rock phosphate is the only source of phosphorus, and access to low cadmium phosphate rock is an essential part of the realignment of the supply chain to provide safe fertilizers to feed the world.

Russia was the major supplier of low cadmium phosphate to Europe.

CRP’s focus on low cadmium phosphate in Australia, French Polynesia and New Zealand projects places it in a unique position to be part of this restructured world supply chain.

While farmers and agronomists talk about the 4R’s for fertilizer addition i.e. right nutrient, right rate, right time and right place; at CRP we can confirm:

  • CRP has the right nutrient – low cadmium phosphate
  • CRP has the right rate of supply – developing 2 Mtpa export mine in Queensland, 250,000 tpa mine on Makatea, French Polynesia and 1.5Mtpa phosphate recovery project Chatham Rise
  • CRP is developing its project at the right time – With project development underway we are matching the current realignment in the world supply chain
  • CRP has projects in the right place – Well located projects capable of meeting the needs of the Indo-Pacific region as well as exporting to Europe

In summary… CRP is the right company to become an integral part of the new secure supply chain to provide safe fertilizers to feed the growing world.

Recommended: Zeus Living Designs And Manages Modern Homes For Rent

Quarterly Update

Most recently we reported on our successful participation in the Investors Exchange in the Prospectors & Developers Association of Canada (PDAC) annual conference staged in Toronto on June 13-15. Chatham was represented by CEO Chris Castle and executive director Colin Randall. As reported, it was an incredibly busy three days as we met with dozens of parties interested in either working with Chatham group companies, investing for the first time, or increasing their existing investment.

The strong forward momentum established at PDAC has continued following the conference with numerous follow up remote meetings with various parties around the globe.

Other recent announcements include:

  1. The confirmation in April of a significantly oversubscribed private placement which raised CAD$2,197,753 (NZ$2,520,952).  Due to this success Chatham now enjoys its strongest financial position since the company was established in 2006.
  1. Subsequently we announced that we had engaged CSIRO (the Australian Commonwealth Scientific and Industrial Research Organisation) to evaluate the potential to extract Rare Earths from our Korella mine and Korella South phosphate ore using biomining technology. Samples of phosphate and overlying sediments have been supplied to CSIRO for initial testing.  Korella phosphate is enriched with Rare Earth Elements (REE) and CSIRO will use biomining technology, utilizing microbes, to study the potential to extract REE. In past exploration of the Korella deposit the presence of yttrium (Y) mainly in the form of xenotime (YPO4) was identified. The previous explorer Krucible reported an inferred JORC resource of 4.2 million tonnes at 746 g Y/tonne (i.e., 0.96 kg Y2O3/t). Also, in past exploration other more valuable heavy REE such as neodymium (Nd) and dysprosium (Dy) were identified as being associated with the yttrium but no systematic testing for these additional REE was conducted.
  1. In May we announced that CRP subsidiary Avenir Makatea Pty, trading as Korella Terminals, had commenced a scoping study into a stand-alone 5Mtpa phosphate/fertilizer export facility in the Port of Townsville (Korella Terminal). This study is being undertaken by an assembled team of industry specialists who bring together years of experience in logistics, major capital works construction, port operations/construction, and financing of new major port/rail facilities for bulk commodities.
  1. At the same time a scoping study for a 2 Mtpa phosphate export mine based on the Korella South is underway and will underpin the economic basis for the 5Mtpa export facility in the Port of Townsville.
  1. Later that month we provided a further update on the activities now taking place under the umbrella of our 100% owned subsidiary Pacific Rare Earths Limited (PRE). PRE was originally formed in 2018 to project-manage a Rare Earths Elements (REE) study on rock phosphate nodules and seafloor muds on the Chatham Rise. PRE is now coordinating the scoping study for concentration of Total Rare Earth Oxides (TREO) from our Korella Mine and Korella South Exploration Area. Three Rare Earth Oxides, Yttrium, neodymium, and dysprosium, described as critical minerals and Heavy Rare Earth Elements, are found in abundance at Korella and Korella South as well as Chatham Rise.
  1. In June we provided a further update on the Dicalcium Phosphate (DCP) manufacturing project we announced on 14 January 2022. DCP and derivative Monocalcium Phosphate (MCP) are essential additives to improve bone growth and structure in all farmed animals. DCP and MCP are added to the feed ration and are an important ingredient in supplemental feeding. Samples had been sent in February to phosphate technology specialists Prayon SA for testing to establish the parameters for production of DCP through their “GetMoreP” technology. Prayon undertook tests in accordance with the standard appraisal protocols for the GetMoreP™ process.  Initial test work suggests, with slight modifications using their process technology suite, low-grade Korella phosphate is a suitable feedstock for MCP production with European Union acceptable fluorine levels.
  1. Most recently we reported further on the acquisition of the fully permitted Korella phosphate mine in Queensland, Australia with its ability to generate positive cash flows starting in 2022. We still expect acquisition documentation will be completed and executed in the near future.

Written by:
Chris Castle
Chief Executive Officer at Chatham Rock Phosphate Limited
Cell: +64 21 558 185
Tickers: TSXV: NZP, NZX: CRP, Frankfurt: 3GRE

  • Reading time:8 mins read
  • Post category:News