How Aguia Resources Is Fast-Tracking Its Brazilian Phosphate Project to Market

Strategic Lease and Contracting Milestones

Aguia Resources Limited has made significant strides in advancing its Tres Estradas phosphate project in Brazil’s Rio Grande do Sul state. The company recently signed a 10-year lease agreement with local limestone fertilizer producer Dagoberto Barcelos (DB) for the use of an existing processing facility in Caçapava do Sul. This move is pivotal, allowing Aguia to leverage established infrastructure rather than building a new plant, which reduces capital expenditure and accelerates the timeline to production.

Complementing this, Aguia awarded a mining and logistics contract to Contrasapper, a local service provider, following a thorough tender process. This outsourcing approach optimizes operational efficiency and mitigates risks by implementing a per-tonne payment structure, aligning costs closely with production volumes.

Financing and Production Outlook

The Brazilian Development Bank of the Extreme South of Brazil (BRDE) has initiated an application process for financing the mine startup, signaling institutional support for the project. While the financing package is still under consideration, this development is a positive indicator for the project’s financial viability.

Aguia aims to commence production by the end of 2025, with first sales of its high-grade phosphate fertilizer product, PAMPAFOS, expected in the first quarter of 2026. The company plans to ramp up to an annual production capacity of 300,000 tonnes by 2027, targeting regional agricultural markets within a 200 km radius of the processing plant.

Market Positioning and Product Development

Marketing efforts are underway to introduce PAMPAFOS, a reactive natural phosphate fertilizer with a phosphate content of 12% P2O5, priced competitively against imported chemical phosphates. A secondary product, LAVRATTO, with lower phosphate content, is slated for launch in 2026 following agronomic testing and regulatory approval.

The company’s strategy includes leveraging an experienced local sales group to penetrate markets in southern Brazil and neighboring Uruguay. This local presence is expected to facilitate community acceptance and accelerate uptake of Aguia’s products.

Exploration and Resource Expansion

Exploration drilling continues at nearby phosphate-bearing carbonatite prospects, including Passo Feio and Vila Progreso, which lie within 20 km of the processing facility. These efforts aim to expand the resource base and support future production growth.

Overall, Aguia’s approach of combining existing infrastructure, local partnerships, and targeted exploration positions the Tres Estradas project as a promising new entrant in Brazil’s fertilizer market.