Centrex Limited Expands Operations and Makes Australian History with Phosphate Rock Exports Centrex Limited

Centrex Limited Expands Operations and Makes Australian History with Phosphate Rock Exports

Centrex Limited (ASX: CXM) has provided an update for the 2023/24 financial year, highlighting operational successes and sustained market demand. The company plans to continue the expansion of its Ardmore phosphate beneficiation plant to meet this demand.

Expansion of Ardmore's Operational Capacity

Due to the phosphate sale successes of the previous financial year and the need to meet market demand, Centrex has been progressing the planned expansion of Ardmore's operational capacity. The Ardmore Phosphate Rock Project in Northwest Queensland was successfully commissioned in 2023.

Australian History Made with Phosphate Rock Exports

Centrex made history with a series of three notable achievements. Firstly, the company exported a shipment of 15,000 tonnes of beneficiated phosphate rock to a customer in South Korea in May 2023, marking the first time an Australian company has supplied beneficiated phosphate rock to the Asian market. This was followed by two large export shipments of phosphate rock to New Zealand in the fourth quarter of 2022, signalling the arrival of Australia's newest export industry.

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Market Agreements and Strong Demand

In addition to the successful exports, Centrex signed long-term off-take agreements with Ameropa, Ballance Agri-Nutrients, and Ravensdown, securing supply to the Australian and New Zealand rock phosphate markets. The company also signed a marketing services agreement with Samsung C&T Corporation, appointing them as the exclusive agent for sales in Korea, Japan, Indonesia, India, Mexico, and Taiwan.

Infrastructure Support by Aurizon

To facilitate the transportation and logistics of Ardmore's phosphate rock product, Centrex signed an exclusive agreement with Aurizon, Australia's largest rail freight operator. The agreement includes the provision of containers, container loading, trucking, rail transport to Townsville, and stevedoring services. This comprehensive logistic solution ensures efficient transport and loading of the rock phosphate to bulk vessels using a rotainer crane.

Future Outlook

Centrex aims to produce up to 440,000 tonnes of high-grade phosphate rock in 2024 to fulfill the requirements of its off-take partners, pending funding. The company continues to receive strong market demand and anticipates ongoing new customer inquiries.

With its operational expansion and strategic partnerships, Centrex is well-positioned to capitalise on the growing global demand for phosphate rock.

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