West Perth—Australian junior resources firm Korab Resources Ltd. said it has received a letter of intent from an Indian company to buy multiple 10,000 mt cargoes of phosphate rock from its Geolsec project in the Northern Territory. The Indian company also has indicated its intention to seek a long-term contract. The project developer already has received a number of other expressions of interest for Geolsec rock. These include the supply of between 80,000-90,000 mt/y in three separate transactions, as well as another for 100,000 mt/y. Korab in November also secured a heads of agreement for the offtake of 250,000 mt with Queensland-based DPA Oceania Pty Ltd. This offtake deal would see Korab supply 50,000 mt/y over a five-year period. As a result of the level of interest from potential buyers, Korab in late February announced it had submitted an expanded mining plan. The mine, which Korab is developing through a wholly-owned subsidiary, Geolsec Phosphate Operations Pty Ltd., is located about 70 km south of Darwin port, and is close to the Stuart highway and a few kilometers from the Darwin-to-Adelaide railway line. Earlier this month, Korab said it hopes to begin mining as soon as sales contracts can be signed but the mine will not run through the whole year, opening and closing depending on demand from buyers. Korab secured the license to mine phosphate from its Geolsec project in July 2014 (GM July 2, 2014).
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