Centrex enters key market with first phosphate shipment from Ardmore to India

Centrex (ASX: CXM) is preparing to send the first shipment from its Ardmore rock phosphate mine in Queensland to a new Indian customer.

Owned by subsidiary Agriflex, Ardmore is one of the few remaining undeveloped high-grade phosphate rock deposits in the world.

Samsung C&T Corporation arranged and will conduct the transaction under the current marketing services agreement it has with Centrex.

First shipment

The shipment of approximately 25,000 tonnes from Ardmore is scheduled for loading in late September and will represent Australia’s first phosphate export to India.

Chief executive officer Robert Mencel said the addition of the Indian phosphate buyer highlights Centrex’s growing international competitiveness and presence in the global market, driven by the increasing production capacity of Ardmore.

India has been identified as a major opportunity for Australian-produced fertiliser due to its heavy reliance on rock phosphate imports.

The country is the world’s largest import market, with 10Mt brought in per annum.

Trade agreement

Mr Mencel said Centrex’s entry into the Indian market has benefited from and is aligned with the recently-enacted Economic Cooperation and Trade Agreement, which facilitates tariff-free exports of Australian goods to India.

“For many in northern Australia, it’s been a long-held dream that the immense phosphate endowment of the Georgina Basin could one day help feed Asia’s burgeoning economic and population growth,” Mr Mencel said.

“Centrex’s first shipment of high-grade, low-impurity phosphate concentrate into this strategic market is beginning to turn this dream into reality.”

“Centrex looks forward to further deepening its relationship with India and other key Asian markets as Ardmore’s development continues to advance.”

New permit

In late June, Centrex was granted a new Queensland minerals exploration permit approximately 70 kilometres from Ardmore.

The permit is strategically located along strike and surrounding Incitec Pivot’s (ASX: IPL) mining lease that contains Phosphate Hill and several other phosphate deposits.

The permit is also adjacent to Avenir Makatea’s mining lease application known as the Korella North project.