Aguia Resources granted construction licence for Brazil phosphate project

HOUSTON (ICIS)–Aguia Resources announced that the construction licence has been granted for its phosphate project in the state of Rio Grande do Sul in Brazil.

The Tres Estradas phosphate project (TEPP) will produce organic phosphate fertilizer commonly known as direct application natural fertilizer (DANF).

Currently within the Rio Grande do Sul, which is one of the largest grain producing areas in Brazil, 100% of their phosphate supply is covered by imports.

Aguia expects that after the ramp-up period of the mine and processing plant, it will produce about 300,000 tonnes/year over the 18-year life of mine.

The processing plant is in the process of being certified as triple net-zero by EDGE, a green building certification system developed by the International Finance Corporation, part of the World Bank.

The company said in making the announcement the State Secretary for the Environment described the project as emblematic in terms of its positive environmental and social aspects.

The licence provides the necessary authorisation to initiate construction and start developing the mine site which Aguia Resources said represents a substantial de-risking in the path to production

The next phase in the permitting process will be the operation licence, which is the site inspection conducted before the opening of the mine and processing plant to ensure it followed the approved design and complies with the environmental, safety, health, and mining rules.

There is also the project’s environmental permitting which Aguia said is under discussion in a public civil action sponsored by the Brazilian Federal Public Prosecutor’s Office.

Although it had a first favourable decision, there is still an injunction request which could prevent the company from starting construction until the court makes a ruling.