• Print
• E-Mail

Phosphates and Fertiliser

Essential for photosynthesis in plants and for other living organisms to manufacture parts such as bones and teeth, phosphorous is one of the three principal components - along with nitrogen and potassium - required in the production of fertilisers, according to background information in a May 28 Bonaparte filing with the ASX.

Guano deposits and rock phosphate originally formed in marine environments are the two main sources of phosphorous used in fertiliser production. Besides the marine deposits Bonaparte is working to develop, Ma'aden, Saudi Arabia's national mining company, is investing some $3.4 billion to fully develop what it expects to be the world's largest source of diammonium phosphate, the Al Jalamid phosphate deposit at Ras az Zawr in its Eastern province, for example.

"Rock phosphate prices have increased from $50/tonne FOB (free on board) in early 2007 to $350-$400/tonne FOB in early 2008 (UBS Investment Research, April 2008)," Bonaparte management noted. "Exports of phosphate fertiliser products from China, which currently account for more than 20% of global granular fertiliser, are expected to cease. Eighty percent of global rock phosphate supply comes from five producers, resulting in a highly restricted supply of raw materials."

Namibian Marine Deposits

The marine phosphate deposit Bonaparte is working occurs as nodules of fine-grain sized sand particles at depths ranging between 150-300 metres seawater.

Bonaparte's initial exploration target‡ in the Meob project area is to define 40 to 50 million tonnes at an average grade between 10% and 15% P2O5 prior to enrichment. This target is consistent with published historic sampling and provides for considerable exploration upside both within Meob project and in the additional 9,000 square kilometres of tenements under application.

The initial phase of sampling in Bonaparte's Meob license area yielded results in line with historical results. Estimates of grade demonstrated potential for enrichment from in situ grades of 18% to commercial grades up to 35% phosphate (P2O5) via simple screening and removal of shell and volatiles in the fine fraction (<1mm).

"We've known about the potential for marine phosphates off the coast of Namibia for a while. Developing these has come about as a natural extension of our marine investigations into the exploration of mining of diamonds and it's been a great development that the price has changed making the commodity a viable consideration for the company...."

The company is applying to the Namibian Ministry of Mines and Energy for an additional nine licenses covering a 9,000 square kilometre area.