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Major fertiliser trader Samsung C&T is lined up to market phosphate from the Ardmore project in North West Queensland under an agreement with mine owner Centrex’s newly minted Agriflex business.

The parties have executed a conditional term sheet outlining Agriflex’s appointment of Samsung as its sole and exclusive marketing representative for sales into Korea, Japan, Indonesia, India and Mexico.

It covers the first three years of production from a planned 800,000 tonnes per annum operation at the Ardmore phosphate project.

“We are pleased to do business with Samsung, one of the world’s largest fertiliser traders,” Centrex managing director Robert Mencel said.

“The signing of the term sheet reflects the strong international interest in the project and its future production.”

He said Centrex was also in advanced discussions with a number potential customers in Australia and overseas.

Marketing deal for Ardmore phosphate

Centrex launched its Agriflex brand this month after carrying out a short mining campaign at Ardmore early this year.

It made 25,000 tonnes of high-grade phosphate rock available to Australian farmers and organic fertiliser manufacturers.

The company also recently signed a research and development contract with Microbiology Laboratories Australia to develop a new microbial product to further increase the value and effectiveness of its Ardmore Direct Application Phosphate Rock (DAPR) product.

An updated definitive feasibility study released in August showed the North-West Queensland project was expected to cost $78.47 million to bring into full production and have a pay-back period of less than two years.

Centrex said it confirmed the proposed operation’s profitability, with a forecast gross revenue of almost $1.5 billion and net cash flow of $429 million.

Marketing deal for Ardmore phosphate