Slow-burn phosphate project inks technology agreement with Taiwan firm

A new agreement with a Taiwanese company will hopefully progress a phosphate project that has so far been stuck in the ground. Read what happened.

A slow-burn Territory phosphate project marked a milestone on Tuesday, inking a licence and technology transfer agreement to develop a lithium ferro phosphate battery cathode manufacturing facility at Middle Arm.

The agreement is a precursor to further discussions which, if successful, could contribute to hundreds of additional Territory jobs in extraction from Avenira’s Wonarah phosphate project in the Barkly and the proposed Middle Arm phosphate production facility.

American WA-based Avenira Ltd signed the agreement with Taiwan’s ALEEESA in the presence of Chief Minister Natasha Fyles watched by stakeholders, bureaucrats and media.

Avenira chairman Brett Clark is optimistic about progressing the project despite systemic delays since it was first brought to the attention of Territory regulators in 2010, zero binding offtake agreements and its ASX share price which sits at 1 cent.

Avenira’s Brett Clark, chief minister Natasha Fyles and ALEEESA’s Jamie Lee sign on the dotted line.

“We’re working with a number of strategic parties at the moment,” Mr Clark said.

“To get this to market we need project finance and we’re in a number of discussions with strategic (partners) in the LFP space or the downstream phosphate market, as well as in the capital markets with US and Australian firms in the capital market space.

“We believe these projects will be financed and I think the key thing around project finance is going to be firstly the revenue line, you’ve got to have offtake agreements.

“We’ve had a number of parties that have approached us who are EV manufacturers, battery cell manufacturers and other groups so we believe that during our bankable feasibility study and even before we may sign non-binding agreements or binding agreements around that, but that all depends.

Avenira project director Brian Campbell with phosphate ore and the finished lithium ferro phosphate

“The other part of project finance is having low technical risk and with the ALEEESA project, which has been running for 10 years and we’ve got a high-tech, low-risk from a technical perspective project moving that ahead.

“The share price is low but we’ve got a number of announcements coming up that should change that completely.”

ALEEESA board member Jamie Lee applauded the Territory government for daring to work with a Taiwanese company despite resistance by the Chinese Communist Party to such partnerships.

“We know that for a long time China’s policies have for so long prevented so many manufacturers from other countries to compete therefore we admire the Northern Territory government, Austrade and Avenira’s uniform vision to select ALEEESA to be a party,” she said.

Ms Fyles said she had no concerns about a Taiwan company accessing the Chinese-leased Port Darwin.

“I don’t have concerns. That port is run by Australians, managed by Australians,” she said.
“Yes it has Chinese owners but we see Chinese investment right across Australia.”