Chatham Rock Phosphate Ltd.’s wholly owned subsidiary, Korella MCP Pty. Ltd., has, for the past two years, been investigating the construction of a plant in Cloncurry to produce monocalcium phosphate (MCP).
MCP is the preferred source of phosphorus for supplemental feeding of phosphorus to cattle in phosphorus-deficient Northern Australia as well as into pigs and poultry to build healthy bones.
To date the company has engaged with two European companies that have the technology to produce MCP at European Union quality standards from either rock phosphate or from phosphoric acid.
In parallel the company engaged with Monash University to run bench-scale testing to look at the parameters required to produce EU quality MCP from the company’s Korella phosphate by utilization of sulphuric acid.
This testing has come to a successful conclusion with the production of MCP at a bench scale.
The company is continuing to look for potential partners to join in a joint venture to build a pilot plant and then a 30,000-tonne-per-annum MCP plant in Cloncurry.
In the meantime, with our extensive knowledge gained in the phosphorus supplement business, the potential for Korella MCP to import EU standard MCP is now under consideration.
This market opportunity arises because, with a few noticeable exceptions, the current supplies of MCP, primarily from China, are rarely MCP manufactured to the correct specification. Fertilizer described as MCP is more likely to be either DCP, MDCP, partially acidulated rock phosphate or in some cases just rock phosphate.
By importing EU standard MCP the company sees an opportunity to create a cash flow business in advance of its own production of MCP.
Shareholders and stakeholders will be kept informed as the company progresses toward establishing an MCP trading operation.
Private placement
Chatham is making a limited offer private placement to raise the working capital the company needs to achieve granted mining permits at Korella North (its immediate key focus) and at Makatea in French Polynesia. Subsequent cash flows from these projects will then be available to fully permit the Chatham Rise project in New Zealand where the recent change of government is clearly a positive development for advancing minerals projects.
Eligible shareholders and prospective investors who wish to participate in this placement which is proposed to close on Dec. 21, 2023, should contact Chris Castle to obtain the subscription agreement.
