Hi guys,Here it is black and...

Hi guys,

Here it is black and white!

http://www.theaustralian.com.au/business/mining-energy/sultan-corp-chases-phosphate-prize/story-e6frg9ex-1226071556147

Sultan Corp chases phosphate prize
EXCLUSIVE Robin Bromby From: The Australian June 08, 2011 10:20AM


ADD another country to Australian mining's march into sub-Saharan Africa -- and another commodity.

We can report exclusively that it is understood that junior Sultan Corp (SSC) -- which two years ago was thwarted in Mali when it went after a similar project there -- is now on the trail of a phosphate project in the small West African state of Togo. There is word in the Togolese capital, Lome, is that Sultan?s CEO Derek Lenartowicz has already begun talks with Mines Minister Damipi Noupokou.

The company is cashed up after a recent $5.4 million capital raising. It is drilling a gold project, has a NSW base metals project well advanced and is now conducting a bankable feasibility study on a zinc-lead project in Montenegro.

Going into phosphate -- if the deal comes off -- will propel Sultan into the bull market story of the looming world food crisis in which fertilisers will become a key weapon. Sultan has a market capitalisation of about $29m and its shares -- of which there are 1.4 million on issue -- have been trading recently around 2 cents.

While poor and with just 6.7 million people, Togo is the world?s fourth largest phosphate producer. The minister recently announced plans to triple production of the fertiliser feedstock with Societe Nouvelles des Phosphates, the state- owned company that manages the industry, has invested $US62m ($57.9m) in mining and excavation materials. There are also plans to build a plant to produce phosphoric acids or fertilisers - a move which would dramatically reduce shipping costs for Togo-based phosphate miners.

Togo has an estimated 60 million tonnes of phosphate reserves. The International Monetary Fund has urged reforms for the phosphate industry.

This is just the latest development for a fast changing Australian phosphate and potash sector. In New York, Global X Funds has launched the world?s first fertiliser exchange-traded fund -- in which Australia?s Incitec Pivot (ICP) is the third largest investment -- and now an Indian state-owned company has signed the initial agreements to participate in a Northern Territory phosphate deposit.

It was revealed last week that India?s National Minerals Development Corp will, as has been rumoured, work with Minemakers (MAK) to conduct a feasibility study into the latter?s Wonarah project which has a resource of 1.26 billion tonnes at 12 per cent phosphate.

India and China between them account for 40 per cent of world fertiliser use but India?s grain yields are still less than half those of crops in the US. Recent figures issued by the Indian government show the demand for fertiliser in the country is higher than ever.

However, Indian newspapers have been reporting in recent weeks there could be a fertiliser shortfall ahead of the summer sowing season. The product most affected world demand and disruptions in North Africa, diammonium phosphate, is also likely to keep growing in price.

India therefore faces more food price rises, a growing problem in the country. The country?s food price inflation is now running at 8.55 per cent.

National Minerals Development has the right now to earn a 50 per cent stake in the Wonarah project. It will reimburse Minemakers for past spending on the project.

The longer term plan is for the two companies to work together to produce downstream fertiliser products including diammonium phosphate.