Aguia revives 55Mt Brazilian phosphate resource as policy shifts

Aguia Resources has announced plans to re-evaluate its Lucena phosphate project in northeastern Brazil, leveraging a recent policy shift aimed at boosting domestic fertiliser production. The ASX-listed company, which holds 16 mining licenses in the state of Paraíba, is restarting the administrative process with the National Mining Agency to secure licence extensions for the project. The move follows the federal senate's approval of the Fertiliser Industry Development Program (Profert), a key initiative designed to reduce Brazil’s dependence on imported fertilisers. The Lucena project currently hosts a JORC-inferred mineral resource of 55 million tonnes grading 6.42 per cent phosphorus pentoxide. This substantial deposit, identified through 49 diamond drill holes conducted between 2011 and 2012, represents only a portion of the broader area initially mapped by the Brazilian Geological Survey in the 1970s. Exploration efforts have also uncovered a separate limestone resource of 41.4 million tonnes, further enhancing the project’s potential. Timothy Hosking, managing director and CEO of Aguia Resources, stated that the renewed assessment of Lucena aligns with the company’s strategy to expand its domestic operations. He noted that the timing coincides with Brazil’s push to increase local fertiliser production and lessen reliance on foreign imports. The Profert program, which requires presidential assent before implementation, includes a R$10 billion (approximately A$2.69 billion) budget over five years. It offers tax credits and mandates increasing levels of domestic content in fertiliser blends, starting at two per cent and rising to 10 per cent by 2037. Brazil, a global leader in agriculture, relies on over 80 per cent of its fertiliser supply from abroad, making it vulnerable to price fluctuations and geopolitical tensions. The Profert initiative seeks to mitigate this risk by encouraging investment in local production facilities and promoting the use of homegrown materials in fertiliser manufacturing. The Lucena project, situated 40 kilometres south of João Pessoa, the state capital, stands to benefit significantly from these policy changes. Aguia is already active in Brazil’s fertiliser sector, operating the Três Estradas phosphate project in the southern state of Rio Grande do Sul. That facility, supported by a JORC-compliant resource of 83.21 million tonnes grading 4.11 per cent phosphorus pentoxide, has exceeded initial projections. Within six weeks of commissioning, the company secured A$2.3 million in sales of its “Pampafos” organic phosphate product. The plant has an annual processing capacity exceeding 200,000 tonnes, demonstrating strong demand for locally produced fertilisers tailored to Brazil’s soil conditions. The success of the Três Estradas operation underscores growing consumer preference for domestically sourced fertilisers, especially those suited to the acidic soils prevalent in many regions of the country. Pampafos, for instance, is specifically formulated to meet these needs, highlighting the importance of regional adaptation in fertiliser production. As Aguia expands its presence in Brazil, it is positioning itself to capitalize on both the current policy environment and the evolving market demands. In addition to its fertiliser ventures, Aguia is advancing its Santa Barbara gold operations in C. These parallel initiatives reflect the company’s diversified approach to resource development, ensuring resilience across different sectors and geographies. With the Lucena project poised for reassessment and the Três Estradas plant already contributing to the national fertiliser supply, Aguia is reinforcing its role as a key player in Brazil’s emerging domestic production landscape.