Key points
- The proposed Korella South mine would produce one million tonnes per annum of low cadmium direct shipping phosphate ore for export.
- Ore would be shipped in bulk through an expanded port of Townsville, five kilometres of new rail from the Korella South tenement to Phosphate Hill.
- Export production would run alongside projected domestic sales of 250,000 tonnes per year of rock phosphate from the Korella mine.
- The scoping study involves Queensland Rail and above-rail service providers and is expected to be completed by July 2022.
While awaiting finalization of the purchase of the Korella mine, Chatham Rock Phosphate Ltd. commenced a scoping study for an export mine based on its adjacent Korella South exploration area.
This follows significant interest from North Asia-based phosphate buyers for a high-grade phosphate rock supply sourced from Korella South. This, combined with the developing acute shortage of low cadmium phosphate in Europe and soaring international rock phosphate prices, has led to the decision to investigate the feasibility of a significant increase in production. This export-focused production and sale of phosphate from Korella South would run in parallel with projected domestic annual sales of 250,000 tonnes of rock phosphate from the Korella mine.
The proposed one million tonnes per annum mine at Korella South would export, in bulk, low cadmium direct shipping phosphate ore through an expanded port of Townsville.
With the Korella South tenement only five kilometres from rail at Phosphate Hill the plan is for a simple extension of the rail and construction of a balloon loop or rail siding.
The scoping study will involve Queensland Rail, as well as above-rail service providers, which have already expressed interest to be involved in the scoping study.
The Phosphate Hill to port of Townsville rail, under the proposed plan, would be extended onto newly reclaimed land at the port of Townsville and matched with new rail unloading facilities, bulk storage, conveyors, new ship loader and berth.
The overall project has the potential to attract government financing from the Northern Australia infrastructure facility.
The scoping study is expected to be completed by July, 2022.
