Aguia Resources is advancing steadily towards mining commencement at its Três Estradas phosphate project in Brazil, with key infrastructure completed and sales agreements signed for its PAMPAFOS™ fertilizer product.
- Operating licence expected by March 2026, enabling mining start
- Completion of internal road infrastructure and processing plant upgrades underway
- Seven letters of intent signed for PAMPAFOS™ sales in Brazil and Uruguay
- Agronomic trials show accelerated biological activity with phosphate-organic compost blends
- BRDE financing secured for equipment procurement and installation
Progress Towards Mining Commencement
Aguia Resources Limited (ASX – AGR) has provided a comprehensive update on its Três Estradas phosphate mine and processing plant in Brazil, signaling a pivotal step forward with mining expected to begin in March 2026. The company anticipates receiving the crucial operating licence (LO) from environmental authorities by February or March next year, a milestone that will unlock the start of mining operations and the commissioning of its PAMPAFOS™ fertilizer production.
Significant groundwork has been completed, including the finalisation of internal road infrastructure and drainage systems designed to minimise environmental impact. Notably, a strategic adjustment to the main drainage layout will preserve native forest and water channels, reflecting Aguia’s commitment to sustainable development and regulatory compliance.
Processing Plant Upgrades and Financing
Alongside mine site preparations, upgrades to the processing plant are underway to expand storage capacity and optimise operations. These enhancements are progressing within the parameters of financing secured from the Southern Regional Development Bank (BRDE), which has already deposited funds to support equipment manufacturing and installation. All equipment suppliers are Brazilian-based, ensuring local economic engagement and timely delivery ahead of the March 2026 operational target.
Market Development and Sales Momentum
On the commercial front, Aguia has signed seven letters of intent (LOIs) to sell a combined 54,000 tonnes of PAMPAFOS™ across Rio Grande do Sul and Uruguay. The company is actively pursuing product registration in Uruguay, expected by March 2026, to tap into the country’s premium organic food sector. A technical cooperation agreement with Uruguay’s National Institute of Agricultural Research (INIA) will underpin agronomic trials, further validating PAMPAFOS™’s suitability for diverse agricultural markets.
Innovative Agronomic Trials
In a promising development, preliminary trials blending low-grade phosphate ore with organic compost have accelerated the biological process by 60%, significantly shortening the expected timeframe for organo-mineral fertiliser production. This breakthrough, observed by Ecocitrus; a cooperative of organic citrus growers; could position PAMPAFOS™ as a natural, highly soluble fertiliser aligned with circular economy principles. Further agronomic evaluation is underway to confirm these early results.
Environmental Stewardship and Regulatory Compliance
Environmental monitoring remains a priority, with ongoing assessments of air and water quality, vegetation, and local fauna conducted by specialist consultants. These efforts support the final submission of data required for the operating licence and demonstrate Aguia’s proactive approach to managing its environmental footprint.
CEO Tim Hosking expressed confidence in the project’s trajectory, highlighting the alignment of progress with planned timelines and budgets. As Aguia moves closer to production, the company’s strategic positioning in Brazil and Uruguay’s phosphate markets is becoming increasingly evident.
Bottom Line?
With regulatory approvals and infrastructure on track, Aguia Resources is poised to transform its phosphate assets into commercial reality by mid-2026.
Questions in the middle?
- Will the operating licence be granted on schedule given regulatory review complexities?
- How will PAMPAFOS™ sales volumes evolve once full production begins?
- What impact will the accelerated organo-mineral fertiliser trials have on market acceptance and pricing?