Aguia Resources advances Brazilian phosphate strategy with key processing plant lease
Aguia Resources (ASX: AGR) has finalised an opportunity to quickly bring its Brazilian phosphate assets to market through a local fertiliser plant.
The company has signed a 10-year lease agreement with local firm Dagoberto Barcelos (DB) to lease an existing fertiliser plant located approximately 110 kilometres from the Aguia-operated Três Estradas phosphate mine site in Brazil.
The signing of the binding lease agreement follows the memorandum of understanding (MOU) reached in November 2024 for Aguia to lease the DB processing facility for a 10-year period with an option to extend the lease for a further 10 years.
Staggered payment plan
Aguia will now make a one-off payment of $1.4 million via six instalments to reimburse DB for planned capital works at the site and offset costs associated with ceasing operations at the plant.
The company will make a first payment of $34,000 eight days after signing, followed by two payments of $154,000 at the end of March and April.
Two further payments of $336,000 will be made at the end of May and June, with a final payment of $386,000 at the end of July.
Monthly lease
A monthly lease fee of $43,000 is payable from 1 August 2025 for the processing facility, which Aguia will operate.
The lease is for an initial 10-year period, commencing once the initial capital works and permits are in place to allow Aguia site control, with an option to extend the lease for a further 10 years.
The facility is currently able to treat approximately 100,000 tonnes per annum of phosphate.
Numerous ore sources
Executive chair Warwick Grigor said Aguia is looking to commence production through the DB plant using Pampafos ore by the third quarter of 2025.
The company has also been fast-tracking the evaluation of the Mato Grande and Passo Feio deposits with a view to displacing Pampafos with ore from these two nearby deposits.
The Mato Grande deposit is situated less than 3km from the DB plant, while the Passo Feio deposit is approximately 8km away.
‘Major step forward’
“This binding lease agreement with DB is a major step forward for Aguia in Brazil,” Mr Grigor said.
“It is expected that processing of Pampafos ore will commence in Q3 2025, after completing some capital works.”
Depending upon the speed of market penetration, Aguia will look to expand production at the plant as early as the start of 2026.
Serious opportunity
Mr Grigor said Aguia views the Brazilian phosphate market as a serious opportunity, given that Rio Grande do Sul – where the company operates – is currently dependent on imports costing $344/t.
Aguia expects to receive $150/t to $160/t for its high-grade product.
In the meantime, Aguia is continuing negotiations with another processing facility in the Caçapava do Sul region for an expanded production profile from its 100%-owned phosphate projects.
“With Brazil largely dependent on phosphate imports, we are confident of carving out a meaningful market position in southern Brazil, the country’s pre-eminent agricultural region,” Mr Grigor added.