phosphate mine owner eyes asia

http://www.ntnews.com.au/article/2009/10/14/92371_nt-business.html

Phosphate mine owner eyes Asia
NIGEL ADLAM

October 14th, 2009


A TRIAL load of phosphate will be shipped out of Darwin in December.

The move means that Perth-based Minemakers is almost certain to open a new mine at its Wonarah project on the Barkly Tableland.

The mine is expected to have a 100-year lifespan.

The 10,000 tonne sample willgo to India. Other trial shipments to potential Asian customers are expected to follow.

Minemakers head Andrew Drummond said the grade would be 35-36 per cent with a "very low" level of impurities, which should mean the ore would "compare very favourably with the highest quality products available elsewhere in the world".

He said a price premium could be expected when full-scale production begins in June next year.

Wonarah is 100 per centowned by Minemakers and is Australia's largest rock phosphate deposit, with an estimated resource of one billion tonnes.

There is a worldwide shortage of rock phosphate - which is used in fertiliser - and the base price has increased recently by 30 per cent to $110 per tonne.

Meanwhile, South Korea is making another move into the Territory phosphate market.

Seoul-based fertiliser exploration and trading company FSL Resources has signed an agreement with Northern Uranium to "combine and advance" their rock phosphate projects.

The deal will give the two companies a total of 38,000sq km of phosphate licences in the NT.

They said the union would create a new major player in the Australian rock phosphate industry.

The most advanced project held by the new partners is north of Minemakers' Wonarah site on the Barkly Tableland.

The deal will allow Northern Uranium to remain focused on developing its uranium projects, particularly the Gardiner prospect in theTanami Desert.

Company chairman Kevin Schultz said he remained committed to uranium exploration.