How Aguia’s A$4M BRDE Loan Could Unlock Brazil’s Phosphate Potential
Aguia Resources has landed a A$4 million loan offer from Brazil’s Southern Development Bank to fund the initial phase of its Tres Estradas phosphate project, enabling production to commence by early 2026 with plans for rapid expansion.
- A$4 million loan offer from Brazil’s Southern Development Bank (BRDE)
- Funding to upgrade leased Pampafos processing facility and start mining at Tres Estradas
- Loan secured against surface rights, 20-year term with 3-year grace period
- Initial production target of 100,000 tonnes per annum by January 2026
- Planned expansion to 300,000 tonnes per annum by late 2026
Government-Backed Financing Boosts Project Viability
Aguia Resources Limited has taken a significant step forward in developing its Tres Estradas Phosphate Project in Brazil by securing a loan offer of approximately A$4 million from the Southern Development Bank (BRDE), a government-owned financial institution. This funding is earmarked to cover capital expenditure necessary to commence mining operations and upgrade the Pampafos processing facility, which Aguia leases from Dagoberto Barcellos S.A.S.
Strategic Use of Existing Infrastructure
Rather than investing in a costly new processing plant, Aguia plans to enhance the existing facility at Caçapava do Sul, which currently processes around 100,000 tonnes of phosphate product annually. The loan will finance upgrades to bring the plant online for initial production by January 2026. This approach not only saves time and capital but also reflects strong local and governmental support for the project.
Long-Term Loan Terms and Expansion Plans
The loan, secured against surface rights at Tres Estradas, carries a 20-year term with a three-year grace period and an interest rate tied to Brazil’s SELIC benchmark plus a bank margin. Aguia’s Executive Chairman Warwick Grigor highlighted that this financing arrangement is a better alternative to spending upwards of A$30 million on a new facility. Looking ahead, Aguia aims to ramp up production to at least 300,000 tonnes per annum by the end of 2026, pending further economic assessments and approvals.
Local Partnerships and Operational Readiness
To support mining and logistics, Aguia has contracted local firm CONTRASAPER for mine services and transportation of phosphate ore to the processing plant. The initial capital expenditure at the mine site itself is modest, estimated at just A$118,000, underscoring the project’s focus on leveraging existing assets and local expertise.
Implications for Regional Phosphate Supply
The Rio Grande do Sul region currently imports all its phosphate requirements. Aguia’s project aims to fill this supply gap, potentially reshaping the local market dynamics. The government-backed financing and phased production approach position Aguia well to meet regional demand efficiently.
Bottom Line?
With government-backed funding secured, Aguia is poised to transform phosphate supply in southern Brazil; next steps will reveal if expansion plans can match initial promise.
Questions in the middle?
- Will Aguia finalize the loan agreement on the proposed terms without adjustments?
- How will the relatively high Brazilian interest rates impact project economics over 20 years?
- What are the timelines and hurdles for scaling production from 100,000 to 300,000 tonnes?
