Aguia Resources has cleared final requests from Brazil’s Rio Grande do Sul environmental agency FEPAM for minor changes to its phosphate installation licence ahead of a closing review that is expected to clear the way for an operating licence.
According to management, those queries have now been addressed and Aguia Resources is now waiting on the green light to kick off mining at its Três Estradas project and begin processing at the nearby Dagoberto Barcelos (DB) plant.
Aguia submitted its responses to FEPAM on May 4 and is anticipating approval within the next three weeks. The timing follows a busy lead-in for the company, which launched its Pampafos natural phosphate fertiliser in Brazil in March and has been steadily ticking off a host of pre-start tasks at the processing facility.
On the ground, Aguia says key electrical works were completed at the end of April. The weighbridge module was also installed and calibrated earlier this month, with the crushing and grinding line and site offices scheduled for completion this week.
Subject to final approvals, operational testing is slated to start at the end of the week, when first-shift employees are expected to begin work.
The company is leaning into a strong local market backdrop, pointing to limited availability of imported phosphate products at the Port of Rio Grande and rising inbound inquiries from potential customers across Rio Grande do Sul.
Aguia Resources managing director and chief executive officer Timothy Hosking said: "Aguia is approaching the final phase before mining begins at Tres Estradas, with final observations from FEPAM now addressed. We are confident that the Operating Licence will be issued shortly – a major milestone for the Company.”
Aguia says it already has non-binding memorandums of understanding in place covering the first 40,000 tonnes of Pampafos product, covering more than 70 per cent of the projected 2026 annual output of 60,000 tonnes, with expectations that interest will build further as production nears.
If FEPAM signs off as expected, Aguia expects to be in a position to move quickly from planning to production just as southern Brazilian farmers sharpen their pencils for the next planting cycle and look for dependable, locally sourced fertiliser.
With the DB processing plant essentially at the sharp end of commissioning, the company’s long-watched permitting process appears to be narrowing to a simple yes-or-no decision.
For punters, the next few weeks could be key, with a near-term catalyst expected in the form of the operating licence and a clear pathway to first production once the regulator gives the nod.
In the meantime, Aguia says customer interest is already building, which should give the company a running start if the final approval lands on schedule.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
