PhosCo (ASX:PHO) is the target recipient for a US Government-backed funding initiative designed to mobilise American private investment into its Gasaat Phosphate Project in Tunisia, which holds a 50-year, 146-million-tonne phosphate deposit.
The US Department of State has published a notice of funding opportunity worth up to US$1.54 million ($2.17 million) in grant funding across up to two awards to support commercial engagement with the development in Tunisia’s Northern Phosphate Basin.
The program aims to achieve three core objectives: securing a 30% to 40% American equity stake in PhosCo, generating US$15 million to US$25 million in US equipment exports, and establishing long-term supply chain agreements for phosphate inputs.
Proposed activities include investor matchmaking, coordination with the US International Development Finance Corporation on blended finance solutions, support for negotiating offtake agreements, and technical assessments.
Managing Director Taz Aldaoud says the initiative represents significant validation of Tunisia’s mineral resource potential and the role PhosCo can play in global food security.
“Phosphate is a foundational input for fertiliser production, and demand for reliable, transparent supply chains has never been more acute,” Aldaoud says.
“We welcome the US Government’s recognition of this opportunity and look forward to engaging constructively with the successful applicant and US agencies as this process unfolds.”
PhosCo notes it will not receive funds directly. Instead, the US State Department will make the award to a third-party applicant organisation, with PhosCo serving as the counterparty asset.
Applications close on 2 September 2026, with an anticipated project start date of 1 October 2026 and an 18- to 24-month performance period.
Over US$285 million in international development bank financing has already been committed to regional rail and processing infrastructure.
PhosCo is a mineral explorer and developer focused on building a phosphate portfolio in Tunisia to support global fertiliser and agriculture markets.
Write to Paula Fabe at Mining.com.au
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