PERTH (miningweekly.com) – Junior phosphate developer Fertoz has formed a joint venture (JV) with Vast Resources to import and distribute a speciality phosphate product from Asia into Australia and New Zealand.
The JV, which would be 51% owned by Fertoz and 49% held by Vast, would be known as Fert-Ag, and was in the process of finalising Australian and New Zealand distribution rights for a fused calcium magnesium phosphate.
The speciality product would be competitively priced with standard phosphate fertilisers, Fertoz said on Thursday.
Company MD Les Szonyi told shareholders that the JV would require no capital investment from Fertoz, and fit with the company’s business strategy to grow through the development of cash generating fertiliser projects.
“Vast Resources brings a strong technical team to the JV to grow the business in Australia and New Zealand, enabling Fertoz to continue to focus on the growth of North American sales of phosphate rock from its Wapiti and Ferni projects, in British Columbia, while generating cash from the sale of fertiliser products in Australia to organic and nonorganic farmers.”
Fert-Ag was expected to sell some 4 000 t of product during the first 12 months of operation, generating a small profit. The JV’s profit distribution would be weighted towards Fertoz until profits exceeded A$1-million a year, at which point the distribution would favour Vast Resources until cumulative profits were equal for both parties.