Australia Centrex Limited executes trial shipment agreement with Ameropa
HOUSTON (ICIS)–Australian fertilizer developer Centrex Limited announced that its Agriflex has executed an agreement for a trial shipment of beneficiated phosphate rock with Ameropa Australia.
The company said the terms are for the sale of a 5,000 wet tonnes beneficiated phosphate rock shipment to Ameropa and includes a first right of refusal to purchase 10% of the Ardmore mine’s annual production for the first three years.
The trial shipment has been sold on a FOB basis with it set to be loaded in November 2022 with pricing to be finalised 6 weeks prior.
If Ameropa does not elect to exercise the first right within the timeframe, then it will lapse for the available production and Ameropa will have no further obligation to Agriflex under the agreement.
Centrex said the trial shipment is conditional upon upgrades to the processing plant being completed by Agriflex to its satisfaction to sufficiently produce the product.
It is also conditional upon receiving all necessary approvals for the performance of the company’s delivery obligations.
Last month the company said mining operations are achieving the scheduled rate of 27,000 tonnes of ore per month and that the crushing contractor had commenced efforts to create both direct application product and feed for the Ardmore beneficiation plant.
The production rate is expected to progressively ramp-up over the next six months as crushing and the beneficiation plant are optimised.
“Agriflex is proud to be entering into this agreement with Ameropa, a well respected and world class company, at the same time helping to improve Australia’s supply security of phosphate rock,” said Robert Mencel, Centrex Limited managing director.
“With the signing of this agreement, the Ardmore Project has 100% of its first three years of production allocated to major customers in Australia, New Zealand and Asia.”