- Fertoz (FTZ) has secured a 10-year contract with Montana Grey Rock to continue its rock phosphate mining operations at Deerlodge, Montana
- Deerlodge is set to support the growth of the company’s Fertify fertiliser pellets, set to commence production in early 2023
- The extension follows Fertoz receiving an order for 18,000 tonnes of Fertify and a 10-year offtake deal
- Fertoz believes these agreements position it to deliver 40,000 tonnes of rock phosphate in 2023, an expected 230 per cent increase compared to 2022 volumes
- FTZ shares are trading steady at 20 cents at 3:10 pm AEDT
Fertoz (FTZ) has signed a 10-year contract to continue its rock phosphate mining operations at Deerlodge, Montana.
The phosphatic fertiliser manufacturer negotiated the long-term extension with Montana Grey Rock, giving it exclusive marketing rights to the mine.
“This extension of the current agreement reflects the positive working relationship developed over recent years and the potential for future growth from this high quality mine,” Fertoz Managing Director and CEO Daniel Gleeson said.
“A long-term extension provides the basis for investment for further analysis of the expected quantity and quality of rock phosphate deposit in the mine.”
The company has been operating at Deerlodge with organic certification since 2018 under a five-year contract that allowed it to establish a high-quality rock phosphate business.
Fertoz’s high phosphate and low-metal rock material from Deerlodge gets hauled to Butte in Montana to be crushed, screened and sized by the company’s processing partner.
Deerlodge will support the growth of the company’s Fertify fertiliser pellets, which is set to commence production in early 2023, and supply its new and existing US customer base.
The 10-year agreement follows Fertoz receiving an order for 18,000 tonnes of Fertify from US farmers, as well as a 10-year offtake agreement with a North American fertiliser manufacturer, expected to deliver 120,000 tonnes of the product in the first five years.
The company believes these agreements position it to deliver 40,000 tonnes of rock phosphate in 2023, which is an expected 230 per cent increase compared to 2022 volumes.
With sales expected to continue growing, Fertoz said it will aim to complete full mine studies next year and plan for the most cost-effective, long-term extraction method.
FTZ shares were trading steady at 20 cents at 3:10 pm AEDT.