Content maintained by Leesa Carson
Phosphate |
AIMR 2008 |
Phosphate
Phosphate rock is a general term which refers to rock with high concentration of phosphate minerals, most commonly of the apatite group. It is the major resource mined to produce phosphate fertilisers for the agriculture sector. Phosphorous also is used in animal feed supplements, food preservatives, anti-corrosion agents, cosmetics, fungicides, ceramics, water treatment and metallurgy. There is no substitute for phosphate.
Australia's commercial resources of phosphate are in north west Qld at Phosphate Hill, 140 km south east of Mount Isa and on the Territory of Christmas Island in the Indian Ocean. Phosphate Hill is a world-class rock phosphate resource which is close to the surface and easy to access and mine. The rock is ideal for the manufacture of high analysis mono-ammonium phosphate (MAP) and di-ammonium phosphate (DAP) fertilisers for domestic and international use.
Christmas Island is a source of quality rock phosphate of which approximately 0.7 Mtpa is exported to the Asia-Pacific region with products used widely in the palm oil sector of the region. Sales of higher-grade rock phosphate are made to Australian manufacturers of MAP fertiliser.
DAP and MAP have different ratios of phosphorous (P) and nitrogen (N), and have slightly different applications. Both products are generally produced as granules with a diameter of between 2-4 mm. DAP (20% P and 18% N) is used on broad-acre crops such as cereal, legume, fodder, horticultural and row crops as well as for dairy and newly-established pastures. MAP (22% P and 10% N) assists with early crop growth and enhances phosphorous uptake in broad-acre crops.
Resources
Excluding Christmas Island resources, EDR of phosphate rock is 81.6 Mt. There is no publicly available information on phosphate rock resources for Christmas Island. All EDR is sedimentary phosphate rock (phosphorites) from Phosphate Hill, QLD, which has an average grade of about 24% P2O5. All EDR is accessible for mining and account for 100% JORC Code reserves.
About 93% of Australia's demonstrated resources occur in the Georgina Basin in QLD and are classified as paramarginal totalling 911.6 Mt. Two deposits, Swan and Emu, occur within carbonatite at Mt Weld 26 km south east of Laverton, WA and make up the remaining 7% of demonstrated resources.
The bulk of Australia's inferred phosphate resources are in phosphorites in the Georgina Basin, and are estimated to be 1150.1 Mt. These resources are distributed between QLD and the NT.
Exploration
There is renewed interest in phosphate rock exploration in QLD, the NT and WA although specific data relating to phosphate rock exploration are not available.
Production
There are two main locations for the production of phosphate rock; Phosphate Hill and Christmas Island. Several small operations near Bendleby, SA are mainly used in domestic industrial applications. Based on USGS figures, Australia produced 2.2 Mt in 2007, excluding Christmas Island production.
The Queensland Department of Mines and Energy estimates that Incitec Pivot's production from Phosphate Hill in 2005-06 amounted to 2.083 Mt of phosphate rock. Phosphate Resources Ltd exported 0.656 Mt of phosphate rock and 0.069 Mt of phosphate dust from Christmas Island during 2005-06. The total production in 2005-06 is estimated to be 2.808 Mt.
World Ranking
USGS estimated that total world resources are 18,000 Mt. Australia's EDR of phosphate rock comprises less than 1% of the world's resources. China and Morocco hold about 36% and 32% respectively followed by South Africa with 8% and the USA with 6%,.
World production totalled 147 Mt in 2007, with China producing 35 Mt, the USA 29.7 Mt and Morocco 28 Mt. USGS estimates that in 2007 Australia produced 2.2 Mt, excluding Christmas Island.
Industry Developments
Phosphate rock prices rose strongly during 2007 from around US$50 per tonne to US$200 per tonne. The rise in price is due to the increasing global demand for fertiliser for food production and for biofuel crops as well as to tighter phosphate rock supplies from Middle East and North Africa.
In Qld, Legend International Holdings Inc. has phosphate projects in the Georgina Basin where its main focus is the development of the Lady Annie and Lady Jane deposits north west of Mount Isa, QLD. A feasibility study in 1974 indicated mining, beneficiation and pipeline transport of concentrated slurry to the Gulf of Carpentaria was feasible. The company plans to transport 4-5 Mt of phosphate rock slurry via a 300 km pipeline to a port facility in Gulf of Carpentaria and export to the Asian market. A pre-feasibility study is planned to start in early 2008, with mining scheduled to commence in the forth quarter of 2009.
In the NT, Minemakers Ltd owns the Wonarah phosphate project in the Georgina Basin. The company is undertaking further resources assessment, a pre-feasibility study and metallurgical test work. Minemakers Ltd is aiming to produce and export 3 Mtpa of beneficiated phosphate rock from 2010.
On Christmas Island, Phosphate Resources Ltd is seeking an additional 200 hectares of land for mining, which would extend phosphate operations from 5 years up to 12 years. However, in May 2007 the environmental approval for the proposed extension was not granted but the company is appealing the decision in the Federal Court. The case expected to be heard in 2008.
