Chatham sells Australian subsidiary, establishes phosphate plant

Chatham Rock Phosphate Limited announced the sale of its Australian subsidiary, Avenir Makatea Pty Ltd, to Austure Industries Pty Ltd for AU$1.4 million. The consideration includes AU$900,000 in cash over 24 months and a 20% shareholding in Austure Phosphate AU Pty Ltd, a new subsidiary formed to establish a DCP/MCP manufacturing plant in Cloncurry. Chatham executive director Colin Randall has been appointed a director of Austure Phosphate AU Pty Ltd.

This agreement provides a local market for rock phosphate from the Korella North mine, supplying a new DCP/MCP manufacturing plant. This plant will utilize a novel green technology developed by Monash alumni chemists to produce Dicalcium Phosphate (DCP) and Monocalcium Phosphate (MCP) for cattle supplements in phosphorus-deficient regions of Australia. The technology also allows the use of tailings-grade rock phosphate with P2O5 concentrations as low as 16%.

The new manufacturing system, Austure Phosphate AU Pty Ltd (APAU), licensed to use the patented technology, will be established in modules of 5,000 tonnes per annum of DCP equivalent calcium phosphate, allowing for rapid commencement and gradual expansion. Australia currently imports an estimated 100,000 tpa of DCP/MCP/MDCP, with MCP CIF prices recently exceeding $1400 per metric tonne.