Aguia Resources has made the leap from developer to producer, successfully commissioning its Pampafós phosphate processing plant in Brazil’s Rio Grande do Sul. The company says initial commissioning results point to a potential 30 per cent increase in annual throughput to over 200,000 tonnes. The achievement follows a string of recent regulatory wins and marks a major milestone in the hungry Latin American fertiliser market.
Aguia Resources has kicked down the developer door and stormed into production in southern Brazil, successfully commissioning its Pampafós natural phosphate fertiliser plant, whilst immediately flagging a massive 30 per cent uptick in expected production.
The company says initial commissioning outcomes have indicated the facility’s annual throughput could be higher than its nominal capacity, potentially pushing it beyond the 200,000 tonnes per annum (tpa) mark, up from a previous estimate of 150,000tpa.
The milestone followed an official launch event for its “Pampafós” organic phosphate product earlier this month, which drew more than 300 attendees, including government officials and industry stakeholders, signalling strong support for the much-needed domestic fertiliser.
The plant’s drying, blending, grinding and bagging activities are now fully functional, marking the start of a commercial production ramp-up for Aguia’s Três Estradas phosphate project in Brazil’s agricultural heartland of Rio Grande do Sul.
The unexpected potential production uptick and commissioning are the culmination of a busy few months for Aguia, which has been methodically ticking off the final boxes on a long regulatory checklist.
In late May, Brazil’s Ministry of Agriculture granted the company a licence to issue invoices for phosphate sales, green-lighting its commercial rollout.
Aguia Resources managing director and chief executive officer Timothy Hosking said: "After an extensive period of permitting, engineering, agronomic validation and project development, we are pleased to see Pampafós enter production and first sales materialising, a very encouraging development."
The strategic importance of the project is not lost on the local market. Pampafós is the first phosphate fertiliser produced entirely within Rio Grande do Sul, a major agricultural state that currently imports almost all of its phosphate fertiliser.
Surprisingly, the agricultural powerhouse of Brazil imports about 85 per cent of its fertiliser, leaving it exposed to volatile international prices and supply chain disruptions of late.
By establishing a local source of supply, Aguia has shored up a cost-effective product for farmers in the region, which is clearly garnering public support.
The company says it already has non-binding deals in place for 44,000 tonnes of its product, covering more than 70 per cent of its initially projected output for the remainder of the calendar year. With the commercial rollout now underway, the focus will shift to converting that early interest into inked sales contracts.
While phosphate in Brazil is the main game for Aguia, the company has also been making solid progress at its Santa Barbara gold project in Colombia.
Last month, management reported significant improvements in head grades at the project, hitting up to a whopping 12 grams per tonne gold in its latest batch, a solid jump from the previous averages of between 3 to 4g/t.
For now, all eyes are on Brazil and the production ramp-up at Três Estradas.
After a long and winding road through the notoriously difficult Brazilian permitting jungle, Aguia appears to have finally reached the clearing. With the plant now humming and the order book starting to fill, Aguia looks to have timed its run perfectly into a market hungry for local supply.
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