minemakers big plans for barkly phosphate

Minemakers' big plans for Barkly phosphate

ALISON BEVEGE

04Jun08

BARKLY phosphate junior Minemakers has secured full ownership of Australia's largest known rock phosphate deposit.

The Wonarah deposit contains an estimated 2 billion tonnes of rock phosphate ore 230km east of Three Ways on the Barkly Tableland. Rock phosphate, a fertiliser, sells for about $400 per tonne at an ore grade of about 32 per cent, making the Wonarah deposit potentially worth billions.

The deposit borders the Barkly highway, with the majority of the deposit on the north side of the road under a cattle station which is subject to a native title claim by the Wunara community. The company plans to first mine the part of the deposit on the southern side of the highway, which is on freehold Aboriginal land, owned by the Arruwurra people.

The tenement had been subject to a clawback agreement with Indonesian miner Indo Mines to buy 10 per cent of the project.

Minemakers yesterday announced it had bought back the right for $2 million in cash and 3 million of its own shares, which yesterday were trading at $1.97.

Minemakers managing director Andrew Drummond said the company preferred 100 per cent ownership of the project.

"You have total control. You don't have to worry about setting up a joint venture structure," he said. "So we haggled and bought the rights."

Mr Drummond said the company was in the middle of a pre-feasibility study to mine a 72-million tonne section of the mammoth resource called the Main Zone on the south side of the highway. The results of the study are due in September.

Minemakers is estimated to have a market capitalisation of about $95 million.