Phosphate

Content maintained by Leesa Carson

• Phosphate
• Resources
• Exploration
• Production
• World Ranking
• Industry Developments

Phosphate rock is a general term which refers to rock with high concentrations 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 northwest Queensland (Qld) at Phosphate Hill, 140 kilometres (km) southeast of Mount Isa and on the remote offshore 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 million tonne per annum (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 millimetres. 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.

Excluding Christmas Island resources, Economic Demonstrated Resources (EDR) of phosphate rock is 81.6 million tonne (Mt), which is unchanged from 2007. There is no publicly available information on phosphate rock resources for Christmas Island. All EDR is sedimentary phosphate rock (phosphorites) from Phosphate Hill in Qld and has an average grade of about 24% P₂O₅. All EDR is accessible for mining and account for 100% Joint Ore Reserve Committee (JORC) Code reserves.

About 86% of Australia's total demonstrated resources of 997 Mt occur in the Georgina Basin in Qld and are classified as paramarginal. The remaining 14% of demonstrated resources occur in Western Australia (WA) within carbonatite at Mount Weld 26 km southeast of Laverton, and at Balla Balla magnetite deposit 100 km west-south-west of Port Hedland.

About 83% Australia's inferred phosphate resources which total 1574 Mt occur as phosphorites in the Georgina Basin. These resources are distributed between Qld and the Northern Territory (NT). The remaining 17% occur in WA mainly associated with the Mount Weld deposit.

There is renewed interest in phosphate rock exploration especially in Qld, the NT and WA although specific data relating to phosphate rock exploration are not available.

There are two main locations for the production of phosphate rock, Phosphate Hill (Qld) and Christmas Island. Several small operations near Bendleby in South Australia are mainly used in domestic industrial applications.
The Queensland Department of Mines and Energy estimates that Incitec Pivot's production from Phosphate Hill in 2007-08 amounted to 2.154 Mt of phosphate rock (compared with 2.129 Mt in 2006-07). Phosphate Resources Ltd's production figures for Christmas Island operations in 2008 are not available because of commercial-in-confidence considerations.

The United States Geological Survey (USGS) estimated that total world resources are 15 000 Mt. Australia's EDR of phosphate rock comprises less than 1% of the world's resources. Morocco and Western Sahara (combined) hold about 38%, followed by China with 27%, South Africa with 10% and the USA with 8%.

World production totalled 167 Mt in 2008, with China producing 50 Mt, the USA 30.9 Mt and Morocco and Western Sahara 28 Mt. USGS estimates that, excluding Christmas Island, Australia produced 2.3 Mt in 2008.

Phosphate rock prices rose strongly during 2008 reaching around US$450 per tonne by mid year as a result of the increasing global demand for fertiliser for food production and for biofuel crops. However, by early 2009 it had retracted substantially to US$110 per tonne, which is still double the long term price. The dramatic decrease was a result of the global financial crisis which had a significant influence on phosphate demand and pricing.

Incitec Pivot announced plans to expand Phosphate Hill (Qld) production capacity from 970 kilotonne per annum (ktpa) to 1.01 Mtpa, to be completed in 2010.

Legend International Holdings Inc. (Legend) is developing a 3 phase phosphate operation in Qld, based on phosphate rock deposits northwest of Mount Isa, most notably at Lady Annie, Lady Jane, D-Tree, Lily Creek and Sherrin Creek within the Georgina Basin. In July 2008, the company signed an off-take agreement with the Indian Farmers Fertiliser Co-operate (IFFCO) for the purchase of up to 5 Mtpa. Legend plans to commence shipping by rail 0.5-1 Mtpa DSO grading 30-34% phosphate by 2010 through the Port of Townsville and ramping up to 5 Mtpa by 2013. The company is to undertake studies into producing value added fertiliser products, MAP and DAP, for domestic and international use.

GBM Resources Ltd is investigating phosphate resources at its Bungalien project (Qld), located 50 km north of the Incitec Pivot-owned Phosphate Hill deposit.

Korab Resources Ltd has completed a scoping study on the GeolSec rock phosphate deposit located near Rum Jungle 65 km south of Darwin in the NT. The study indicated that the deposit could be developed as a simple quarrying operation capable of supplying the agricultural sector with a ground-up rock phosphate to be used as an organic fertiliser. The company is planning an initial production in 2010 of 10 ktpa and increasing to 30 ktpa by 2013.

Phosphate Australia Ltd is undertaking pre-feasibility studies on its Highlands Plains project (NT) where it has reported Inferred Resources of 56 Mt at 16% P₂O₅ at a cut-off grade of 10%. The company is targeting a higher grade zone, Western Mine Target Zone, containing 7 Mt at 23% P2O5 with a 20% P₂O₅ cut-off grade occurring at a shallower depth. The company is aiming for a 500 ktpa operation commencing in late 2011.

Minemakers Ltd has commenced a feasibility study in the NT into its Wonarah phosphate project in the Georgina Basin. The company plans to develop a high-grade open cut mine producing direct shipping ore (DSO) material at a grade of more than 36% P₂O₅. A further resources assessment has established a resource of 1105 Mt grading 18% P₂O₅ including 167 Mt at 21.3% P₂O₅ in the Indicated Resource category. This proposed development less than 300 km from the Darwin to Adelaide railway would utilise established road, rail and port infrastructure. In early 2009, Minemakers Ltd and the Darwin Port Corporation signed a Heads of Agreement covering the shipment of rock phosphate through the existing port facilities. The DSO production is planned to commence in mid 2010 with exports of 3 Mtpa of beneficiated phosphate rock scheduled from 2011.

Navigator Resources Ltd reported Inferred Resources of 3.55 Mt at 2% rare earth oxide (REO), 11.2% P₂O₅, 216 parts per million (ppm) U3O8 and 36 ppm thorium at its Cummins Range carbonatite deposit in the southeast part of the Kimberley region in WA. Within the deposit, the company reported a higher grade phosphate zone, which partially overlaps an REO zone, of 13.1 Mt at 10.0% P₂O₅.

Aurox Resources Ltd is continuing studies into the beneficiation of phosphate from its Balla Balla project in WA, which has a total phosphate resource of 89.69 Mt grading 3.74% P₂O₅. The phosphate mineralisation extends to 20 metres above the titanomagnetite ore into the hanging wall waste rock. The apatite bearing material displays grades of between 3% and 7%. The company is aiming to produce 1 Mtpa of plus 30% P₂O₅ concentrate.

On Christmas Island, Phosphate Resources Ltd shipped a record 262.3 kilotonne (kt) of phosphate for the September 2008 quarter, an increase of 35 kt over the September 2007 quarter. However, from late October the global financial crisis forced the company to have an unscheduled shutdown of the Christmas Island operations for the remainder of the year. Following a successful appeal in the Federal Court of Australia setting aside a Ministerial decision refusing the company approval for expanded mining on the island, Phosphate Resources Ltd has reapplied to the Australian government to explore and mine an additional eight areas comprising a total of 256 hectares, extending phosphate operations from 5 years up to 12 years.