Aguia Resources is poised to commence production at its Tres Estradas phosphate mine with infrastructure nearly complete and key licenses expected imminently. Meanwhile, exploration at the nearby Passo Feio project reveals promising phosphate grades, underpinning a strong market outlook amid global supply constraints.
- Tres Estradas mine site infrastructure and processing plant nearing completion
- Final mining ordinance and operating license expected by March or April 2026
- Passo Feio exploration drilling completed with high phosphate grades up to 18.49% P2O5
- JORC-compliant resource estimate for Passo Feio anticipated mid-2026
- Fertilizer market remains robust due to high sulphur prices and Chinese export restrictions
Infrastructure and Licensing on Track at Tres Estradas
Aguia Resources Limited is advancing steadily towards production at its Tres Estradas phosphate mine in Rio Grande do Sul, Brazil. The company reports that all major capital works at the mine site and processing facility have been completed, including drainage, office infrastructure, power installation, and waste management systems. The site is now awaiting the final mining ordinance and operational license, with regulatory bodies indicating approvals are imminent, expected by March or early April 2026.
This progress positions Aguia to begin operations shortly, with equipment deliveries and installation scheduled through February and March. The processing plant is largely outfitted, with key components such as the rotary dryer and gas scrubbers nearing completion. The company has also invested in environmental restoration measures, planting native species to stabilize slopes and promote revegetation.
Exploration Success at Passo Feio Bolsters Resource Base
Complementing the Tres Estradas project, Aguia has completed extensive drilling at the nearby Passo Feio phosphate tenement, located 11 to 15 kilometres from the processing facility. The auger drilling program, comprising 283 holes over 2,200 metres, has returned encouraging phosphate grades with assays up to 18.49% P2O5 and an average of 5.03%. Geological and geophysical data suggest the deposit may be analogous in scale and grade to Tres Estradas, which currently holds a JORC-compliant Measured and Indicated Resource of 83 million tonnes at 4.11% P2O5.
Aguia anticipates releasing a JORC-compliant Mineral Resource Estimate for Passo Feio by mid-2026. Early indications point to at least 3 million tonnes at 5.7% P2O5, with mineralisation remaining open along strike. This exploration success is a key part of the company’s strategy to reduce logistics costs by sourcing phosphate ore closer to the processing plant and to support the construction of a second greenfield facility at Tres Estradas by 2028.
Fertilizer Market Dynamics Support Aguia’s Strategy
The global fertilizer market remains favourable for phosphate producers like Aguia. High sulphur prices, which impact phosphate fertilizer production costs, continue to squeeze margins industry-wide. Additionally, ongoing export restrictions from China, a major phosphate supplier, are reshaping global trade flows and increasing competition among alternative sources.
Market analysts from SAFRAS Consultoria highlight that while India’s demand may be subdued early in the year due to inventory levels, Brazil’s preference for cost-effective phosphate products like Single Super Phosphate (SSP) and Triple Super Phosphate (TSP) supports domestic producers. Aguia’s pricing strategy reflects these dynamics, with recent models considering a price of AUD 220 per tonne for Pampafos, a phosphate product with 12% P2O5 content, which remains competitive against imports.
Looking Ahead
With infrastructure and licensing milestones approaching, Aguia Resources is well positioned to transition from development to production. The company’s dual focus on expanding its resource base through exploration and capitalising on strong market fundamentals could underpin growth in the coming years. Investors and industry watchers will be keenly awaiting the final operating license and the upcoming resource estimate for Passo Feio, which together will shape Aguia’s operational and financial trajectory.
Bottom Line?
Aguia’s imminent production start and promising exploration results set the stage for a pivotal year amid tightening phosphate markets.
Questions in the middle?
- When exactly will the final mining ordinance and operating license be issued?
- How will the Passo Feio resource estimate impact Aguia’s production plans and capital expenditure?
- What are the potential risks if fertilizer market conditions shift or regulatory delays occur?