Aguia wins Tres Estradas licence

Licence granted, start‑up in sight

Aguia Resources said Rio Grande do Sul environmental agency FEPAM issued the operating licence for Tres Estradas on Friday 15 May 2026, following a final round of minor adjustments to the project’s installation licence. The approval formally authorises mining at Tres Estradas and processing at the company’s phosphate plant, establishing Aguia as a Brazilian phosphate mining and processing operator. Operations are scheduled to begin from 18 May 2026, with commissioning work on site already complete or in its final stages.

Positioning PAMPAFOS for local farmers

Managing director and CEO Timothy Hosking said the operating licence is “a major milestone for the Company” and comes after FEPAM’s final observations were addressed. He said Aguia has worked to position PAMPAFOS, its locally produced natural phosphate fertiliser, as a reliable and essential product for the commercial farm sector in southern Brazil, particularly as growers prepare soils for the summer planting season. He added that the company is taking steps to boost local production capacity to reduce reliance on imported phosphate products, which are facing severe supply disruptions.

Construction enters commissioning phase

On site, Aguia reports that construction is effectively finished. Electrical infrastructure was completed at the end of April, weighbridge electronics were installed and calibrated in early May, and assembly of crushing and grinding equipment was due to be completed by mid‑May. The company expects onsite offices, big‑bag loading systems, bulk loading silos and scale installations across the plant to be finished in the same period. Operational testing is scheduled to begin on 15 May, which also serves as the official plant‑readiness date when first‑shift employees start work.

Market tightness at Rio Grande

The ramp‑up comes at a time of tight phosphate supply in southern Brazil. Since January, the Port of Rio Grande has faced limited access to several imported phosphate sources, including SSP, Bayóvar and Moroccan phosphate, against a backdrop of global supply disruptions and geopolitical tensions. Recent market data for Rio Grande show imported MAP (52% P₂O₅) at about $995–1,011 per tonne FOB, TSP (36–46% P₂O₅) at around $663–828 per tonne, and SSP (19% P₂O₅) at roughly $426–433 per tonne.

Cost advantage for PAMPAFOS

Aguia is pitching PAMPAFOS as a cost‑effective local alternative in this environment. PAMPAFOS, a natural phosphate fertiliser produced from Tres Estradas ore and containing about 12% P₂O₅, is currently offered at A$222 per tonne (about $153 per tonne) on a cash basis. On a nutrient‑adjusted basis, the company calculates this at about A$18.73 per unit of P₂O₅ (about $12.90 per unit), compared with around A$26.79–27.22 (about $18.50–18.80) for MAP, A$24.80–26.21 (about $17.10–18.10) for TSP and A$31.39–31.91 (about $21.70–22.00) for SSP. Aguia says this implies roughly 30% savings versus MAP, 20–30% versus TSP and about 40% versus SSP, before factoring in an additional freight advantage of up to A$20 per tonne (about $14 per tonne) from producing closer to end‑users.

Building a local customer base

Aguia’s marketing and commercial manager in Rio Grande do Sul is reporting strong inbound interest for PAMPAFOS from multiple counterparties. The company has already signed non‑binding memorandums of understanding covering the first 40,000 tonnes of output and expects this figure to rise significantly in the near term as more farmers seek to replace imports with a domestic source. Management argues that a local mine‑to‑market model helps cut import dependence and logistics risks while giving growers greater price visibility during a period of global fertiliser volatility.

Aguia describes Tres Estradas as strategically well placed to replace imported phosphate in southern Brazil and support the region’s commercial agriculture. With the operating licence now granted and operations due to start, the ASX‑listed company aims for a rapid ramp‑up to capture what it sees as a window of strong demand for locally produced PAMPAFOS and to build a durable customer base in Rio Grande do Sul.