Junior phosphate rock miner Centrex Metals Ltd., Adelaide, South Australia, on Oct. 21 announced that its 100 percent-owned subsidiary, Agriflex Pty Ltd., has executed a conditional term sheet with Samsung C&T Corp. for the offtake of phosphate from the company’s planned 800,000 mt/y Ardmore Phosphate Rock Project in northwest Queensland (GM June 7, 2019). Samsung would be the sole and exclusive marketing representative for sales into Korea, Japan, Indonesia, India, and Mexico.
The initial term of the term sheet is three years of production. Marketing services would be for the lesser of 20 percent of the product from the project or 160,000 mt of product. In addition, Samsung may also assist the company with sales of any additional quantity that it does not take. The price to be paid by Samsung will be market netback price defined as the actual sales price minus direct costs and marketing service fee.
The conditions precedent for the agreement include Agriflex’s final Board approval to proceed with the construction of the plant; Samsung’s internal corporate approvals; Agriflex’s financial close in relation to the financing arrangements for the project; and the actual commencement of production from the plant.