CI Resources ups Christmas Island stake

Western Australian company CI Resources will increase its stake in phosphate miner Phosphate Resources by 2.97 per cent.

The increase brings its share in the company, which mines phosphate on Christmas Island, to 41.74 per cent, from a previous holding of 38.76 per cent in December.

CI Resources remains PRL's largest shareholder. Under the creep provisions of the Corporations Act, CI Resources can acquire up to 3 per cent of PRL in a six month period.

PRL is an unlisted public company which carries out phosphate mining on Christmas Island, where it has mined and exported phosphate since 1990. PRL is the biggest employer on Christmas Island.

CI Resources Chairman, Mr Clive Brown, said CI Resources would continue to examine ways to maximise shareholder value, including the potential to further increase the Company's exposure to PRL as is considered appropriate by the board and in accordance with the Corporations Act.

"Despite the current weak market conditions, the medium to long term outlook for phosphate and wider fertiliser demand remains excellent. An increased holding in PRL will stand CI Resources in good stead to benefit from this outlook," Mr Brown said.