ASX-listed Aguia Resources is confident that it will soon be granted an operating licence for its Tres Estradas project, in Brazil, from the Fundação Estadual de Proteção Ambiental Henrique Luís Roessler (FEPAM) – the environmental protection agency for the state of Rio Grando do Sul.

The FEPAM recently requested additional information from Aguia, including information on the project infrastructure schedule, changes to the land registry and environmental cadastre, revised layouts and cartographic data, alignment of environmental monitoring and minor additions to previously submitted documentation, among others. Aguia submitted its responses to the agency on May 4 and expects to receive approval within the next three weeks.

The Tres Estradas project is strategically well positioned to replace imported phosphate product in the south of Brazil – a region facing a significant shortage of imported phosphate. 

Aguia plans to introduce two phosphate products to Brazil – Pampafos (12% phosphorus pentoxide) this year and Lavratto (6% phosphorus pentoxide plus 2.5% sulphur) in 2027.

"Aguia has worked hard to position Pampafos as a reliable and essential fertiliser for the commercial agricultural sector in southern Brazil, especially as farming groups prepare their soils for the summer planting season. As a trustworthy source of phosphorus, Aguia is taking steps to aggressively boost local production capacity to meet increased demand and, therefore, reduce the sector’s reliance on imported products which are experiencing severe supply disruptions,” Aguia MD and CEO Timothy Hosking says.

The company points out that the Port of Rio Grande, in southern Brazil, has experienced limited access to various phosphate sources, exacerbated by the closure of the Strait of Hormuz in the Middle East.

By making use of the locally-produced Pampafos product, farmers in the region should benefit not only from the availability of the product, but also its lower cost – as expensive transport costs will be eliminated.