Aguia Resources is ramping up preparations for mining at its Três Estradas phosphate project in Brazil, with upgrades progressing ahead of schedule and production slated to begin in March of next year.
Mine site preparations appear to be advancing steadily, with a drainage system for the sump area and a 9-kilometre municipal road access already complete.
The company says it expects to receive its final operating licence from the State Foundation for Environmental Protection in February or March, paving the way for initial mining and stockpiling.
Processing and first sales of its organic phosphate product “Pampafos” are targeted for mid-2026, with funds from the Southern Regional Development Bank already deposited to support final plant upgrades and equipment procurement.
Seven letters of intent have been secured from Rio Grande do Sul and Uruguay for 54,000 tonnes of Pampafos - a number which is expected to rapidly increase as the company approaches first product, due to local demand.
Aguia say that trials on blending low-grade phosphate ore with organic compost have impressively shortened its biological stabilisation process by 60 per cent. Early results showed rapid fungal growth across all samples, reaching over 45 degrees Celsius in three days.
Biostabilisation produces a more effective natural fertiliser, opening the door to premium product markets.
The company also says progress across all workstreams remains on time and on budget for the expected start of mining in March.
A revised layout for the main drain at the waste pile site has now been drawn up, preserving 5.4 hectares of native forest. The new designs will be subject to review by the environmental authority during a site inspection slated for December 8.
Once approvals are secured, work can run in parallel across both the pile and pit areas, ticking off the final conditions of the installation environmental licences and clearing the path for an all-important operating licence.
Aguia Resources CEO Tim Hosking said: “Progress across all work streams is advancing to plan, budget and timelines in order to commence mining operations at Três Estradas in March.”
Aguia says its expecting to produce of more than 160,000 tonnes of its flagship Pampafos product every year by 2027. According to the company, recent field trials showed Pampafos rivals the performance of top-shelf imported fertilisers at a fraction of their price.
Aguia’s product has also gained approval from Brazil's Ministry of Agriculture, with only the registration certificate pending a post-upgrade inspection of the facility once the operating licence is in hand.
Aguia estimates its operating costs to total A$65 per tonne and says at recent market pricing it could potentially pull a gross profit margin of A$21.6 million per annum.
With the advancements on site, financing execution and order letters flowing in, Aguia is moving towards a solid operational launch mid-next year, leveraging its phosphate assets in Brazil's agricultural region to meet the desperate demand for sustainable fertilisers.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
