Aguia Resources (ASX:AGR) has been granted an operating licence to facilitate mining at the Tres Estradas Phosphate Project in Rio Grande do Sul, with operations commencing today (18 May).
Brazil’s environmental agency FEPAM issued the licence last Friday (15 May), with the company clear to move on to operations with mining equipment already mobilised to site.
The licence allows Aguia to mine and process its Pampafos phosphate for sale into the Brazilian market. Operations will focus on the removal of topsoil and the extraction of ‘high-grade’ blocks in the northeastern area of the pit.
The company’s Brazilian subsidiary Aguia Fertilizantes was registered to sell fertiliser by the local Ministry of Agriculture, Livestock, and Food Supply in early April, as reported.
Aguia expects the first load of material to arrive at its processing plant in Caçapava do Sul in the first week of June for processing and bagging.
CEO Timothy Hosking says the operating licence is a “major milestone” for the company that pushes Tres Estradas into production.
“With all environmental approvals now secured, we are ready to begin operations, build stockpiles, and start processing through our plant at Caçapava do Sul,” Hosking says.
“Over the past two years, our strategy has been consistent: advance the project based on a low capex and opex model that enhances project returns and therefore delivers shareholder value.
“We have delivered on that approach by securing an existing processing plant, which we have refurbished extensively, and contracted respected and capable mining and logistics services groups.
“By focusing on efficient, scalable development, we have positioned Aguia to enter production with minimal capital requirements.”
Aguia Resources is a multi-commodity explorer with phosphate assets in Brazil and gold assets in Colombia.
Write to Maddison Elliott at Mining.com.au
Images: Aguia Resources
