The resources sector is making a comeback in North West Queensland, following Dyno Nobel’s (ASX:DNL) sale of Phosphate Hill to privately held Mayfair Australia’s wholly owned subsidiary Ryowa II GPS.
The Queensland Government says the binding agreement provides renewed confidence for the region and certainty for 500 Phosphate Hill workers, as well as the secondary businesses that rely on the asset’s operation.
Dyno’s execution of the sale agreement follows the state government’s support package to the Mount Isa Copper Smelter in October 2025 to protect jobs, provide regional certainty, and restore investor confidence.
Glencore (LSE:GLEN) received a support package valued up to $600 million from both the federal and state governments to keep the Mount Isa Copper Smelter and Townsville Copper Refinery operating for the next three years, as reported by Mining.com.au.
Queensland Minister for Natural Resources and Mines Dale Last says the government is focused on delivering a better lifestyle for the state by “backing Queensland’s industrial capabilities”.
“When the Crisafulli Government stepped in to deliver a future for the Mount Isa Copper Smelter and Townsville Refinery, we sent a clear message that this government backs North and North-West Queensland, backs industry and backs the hardworking Queenslanders who rely on those industrial capabilities,” Last says.
“The Crisafulli Government has delivered the confidence needed for investment and continuity at Phosphate Hill, delivering a pathway forward for workers, suppliers, contractors and local businesses across the region.”
Dyno Nobel CEO Mauro Neves says the sale of Phosphate Hill is an “important milestone”, concluding the explosives company’s connection to the fertilisers business.
“This transaction delivers the certainty that we have been working towards and allows us to fully focus on our future as a global explosives leader,” Neves says.
“We have always been committed to achieving a responsible transfer of ownership of Phosphate Hill that protects the interests of our shareholders, our people, our customers, and the North West Queensland community.
“I am very pleased that our talented teams in Phosphate Hill, Mt Isa, and Townsville will continue to provide Australian farmers with a secure domestic source of fertiliser supply.”
The sale agreement holds a nominal consideration of $1 for the purchase price of Phosphate Hill, followed by a deferred consideration of up to $100 million. Mayfair will assume economic risk for the asset as of 1 April 2026.
Phosphate is the natural source of phosphorus, which aids necessary growth and development for plants, and is also an essential ingredient in all fertilisers.
Trading Economics reports the spot price of phosphorus at ¥1,025 ($210) per tonne as of 10 March.
Write to Maddison Elliott at Mining.com.au
Images: Dyno Nobel
