news article: territory phosphate mine prosp..

http://www.ntnews.com.au/article/2009/07/08/65021_nt-business.html

Territory phosphate mine prospects soar
NIGEL ADLAM

July 8th, 2009


THE amount of phosphate at a Territory mining project has nearly doubled following a new estimate.

And better grade ore has been found.

Minemakers managing director Andrew Drummond said: "We've got more and better."

The Perth-based company runs the Wonarah project just south of the Barkly Highway.

It plans to freight the phosphate 260km to Tennant Creek and then send it by railway to East Arm Wharf in Darwin for export to Asia.

Minemakers has signed a $100 million export heads of agreement with the Port of Darwin.

The company expects to find even more phosphate at the tenement.

But Mr Drummond said: "We don't really need more - we want the best grade."

Wonarah's estimate is up from 630 million tonnes to 1105 million, of which at least 167 million tonnes is high grade.

The best grade will be exported first to give Minemakers cash flow to repay capital costs.

Wonarah will export 5 million tonnes a year, giving it life of at least 30 years. Mining is expected to start in mid-2010.

Mr Drummond said phosphate prices had crashed in the global financial crisis but were expected to pick up in 2010.

He said that the demand for phosphate - a key ingredient in fertiliser - was increasing at 3 per cent a year until the crash.

"The world's population is growing all the time and farmers need fertiliser," Mr Drummond said.

Minemakers will complete a feasibility study in September and then start marketing.

Morocco's King Mohammed VI has long held a virtual world monopoly of phosphate.

He is the fifth wealthiest royal in the world, with a personal fortune of about $2.2 billion.