Highlights

• Aguia Resources is focused on developing its pre-production phosphate and metallic copper projects located in southernmost Brazil.
• Its flagship Três Estradas Phosphate Project (TEPP) is designed to develop a natural phosphate fertiliser product.
• The broader farming community has shown strong support for the company’s Pampafos natural phosphate product, highlights the company.
• With the successful construction of its phosphate project, Aguia aims to tap a potentially vast new market for its Pampafos product in Brazil.

ASX-listed multi-commodity company Aguia Resources Limited (ASX:AGR) is moving forward with full gusto to develop its pre-production phosphate and metallic copper projects located in southernmost Brazil.

Committed to advance its projects into production, Aguia’s team is composed of experienced and skilled professionals based in Porto Alegre, the capital city of Rio Grande do Sul.

Aguia’s strategy is designed to build two mines in the coming three years. A recent development was a step forward in this direction. In November, the company crossed a major milestone by securing construction licence from the state environmental regulator in Rio Grande du Sol for its flagship Três Estradas Phosphate Project (TEPP).

The company highlights that its phosphate project is a low operating expenditure (OPEX) and a low capital expenditure (CAPEX) asset, designed to develop a natural phosphate fertiliser product.  

What makes AGR’s phosphate project stand out?

Image Source: Company Website

According to the company, there is strong support for its phosphate project within the state of Rio Grande do Sul. Also, the broader farming community has shown support for the company’s Pampafos natural phosphate product.

As per the recent address by AGR Executive Chairman Christina Mc Grath, the State Secretary for the Environment and the Secretary for Agriculture have also expressed their strong support for the project for its remarkable environmental, economic, and social credentials.

Also, phosphate has been declared by the Brazilian federal government as a strategic mineral. The government has also been proactive in supporting companies such as Aguia in a bid to lower the country’s huge dependency on imported phosphate.

Phosphate mine construction on the cards

Aguia expects that it will take around a year for the construction of the phosphate project once the relevant legal approvals are obtained. Among other requirements, the company has the land, while the mine manager has been appointed, and detailed preparations are underway to begin construction work.  

Since 2019, the company has been conducting agronomical trials with its Pampafos fertiliser product. In the last 12 months, the company shared encouraging test results on rice, oat, corn and pasture.

According to the company release, the most recent agronomic testing results from the application of its organic phosphate to native grasslands was excellent. However, the process of product marketing with agronomical testing is still underway.

The company expects group marketing efforts to ramp up significantly once the construction of the phosphate mine commences.

With the successful construction of this project, Aguia aims to tap a potentially vast new market for its Pampafos fertiliser product in Brazil, a potential addressable target market with around nine million hectares of cattle grazing.

Stock price information - AGR shares were trading at AU$0.058 on 20 December 2022.