HOUSTON (ICIS)--Eagle Star Minerals has determined that it will attempt to restart production of direct application natural fertilizer at its Itafos site as its short-term strategy to fill a void within the Brazilian market, the Canadian fertilizer developer announced on Wednesday.
According to the company, this type of fertilizer is produced by mining at high-grade phosphate mineralization, then crushing the nutrient and milling the final product. This process has been used commonly in the region with the primary customer base being local farmers supplied from the neighbouring Itafos mine for the past five years.
When Eagle Star completed the new Single Super Phosphate (SSP) facility at Itafos, the production of this fertilizer was suspended creating a distinctive void for local growers, but the company intends to reverse that course.
Vancouver-based Eagle Star is focused on the exploration and development of agro-mineral properties, primarily fertilizer resources, within Brazil to supply a growing agricultural economy.
Company president Eran Friedlander said the recently completed initial resource estimate has confirmed a larger high-grade resource at the Itafos site than was expected and affords the fertilizer developer the opportunity to try to restart this production while Eagle Star completes its strategy for its larger Bomfim project.
“The results represent a critical step towards achieving Eagle Star's goal of becoming a direct application natural fertilizer producer in the short term,” said Friedlander. “Direct application natural fertilizer production also provides us with the means to deliver on our commitment to reduce shareholders' dilution while we continue to unlock potential by way of exploration throughout Bomfim.”
The company said the production is expected to produce the following direct fertilizers: DANF-F10 containing 10% P2O5 content, DANF-F15 with 15% P2O5 content and DANF-F20 with 20% P2O5 content. The estimated average selling price for these products will be approximately $100 per tonne.
Eagle Star said a feasibility study has not yet been completed but is expected to be finished soon. Therefore, at this time there is no certainty that the proposed operations will be economically viable.