High-grade phosphate rock has been domestically exported in an Australian first that could help to shore up critical supplies of fertiliser.
Key points:
- Australia previously imported 100 per cent of its phosphate supply
- The pandemic and the war in Ukraine have disrupted imports and driven prices through the roof
- Mine operator Centrex Metals says the domestic supply will make prices more sustainable for farmers
Mined at Ardmore between Dajarra and Mount Isa in north west Queensland, the phosphate rock was transported via rail to the Port of Townsville for export to southern Australia.
The project is one of the few remaining undeveloped high-grade phosphate rock deposits in the world.
Mining commenced in August of 2021 after planning began in the 1960s.
Centrex Metals chief executive Robert Mencel said it was a significant day for the industry because previously the mineral was 100 per cent imported.
"Around 400,000 tonnes a year gets imported into Australia, about 600,000 tonnes into New Zealand," he said.
"So about a million tonnes in total in this part of the world and it predominantly comes from Africa.
"So not only is this a new industry, but it's actually improving Australia's food security."
Mr Mencel said the project would provide an export opportunity for Australia and reduce the need for importation.
"One of the things we're seeing is that our customers really want to deal with an Australian company," he said.
"Customers feel much more confident, more enthusiastic, because they believe Australian companies offer much better governance and much better security of supply."
Australian soils are traditionally low in phosphorus and to achieve productive yields phosphorus fertilisers are applied to farmland around the country.
Fertiliser prices over the past two years have increased dramatically due to supply chain issues caused by the pandemic and the war in Ukraine.
Australian farmers have had to foot the bill but Centrex Metals chief finance officer Cormac Byrne said the first domestic export of phosphorous signalled a reduction in prices.
"I think the freight … is a big saving for our domestic clients that don't have to ship for longer distances — that's the advantage of this product," he said.
"Just having another supplier in this part of the world increases supply and that will improve prices for final customer, or the farmers."