Chatham Rock Phosphate Limited has taken another value-adding step to its phosphate production with planned manufacturing of Dicalcium Phosphate at Korella South. The company announced the start of a prefeasibility study for the production of Dicalcium Phosphate from the Korella and Korella South phosphate projects in Queensland. DCP is an essential ingredient in the diet for all farmed animals including beef cattle in feedlots as well as all dairy cattle in that it enables healthy bone growth.

DCP is currently a fully imported product that has recently become subject to supply-chain difficulties. Internal discussions concerning the production of DCP started back in January 2021 when Avenir Makatea Pty Ltd. (Avenir Makatea) was approached by Belgium company Prayon SA as to whether the technology was suitable for their Makatea project. Having regard to the high demand for DCP in Australia and in particular Queensland beef feedlots, attention turned to looking at sources of phosphate in Northern Territory and Queensland.

Since the merger of Avenir Makatea and CRP in July 2021, a detailed scoping study for siting of the DCP plant has been undertaken in conjunction with Prayon having regard to supply of the three key ingredients, phosphate, limestone and sulfuric acid. Three sites were considered, one in the Northern Territory and three in Queensland. Following the recent the application for an exploration area at Korella South adjacent to the Korella Mine, the decision has now been taken to progress to the Prefeasibility Study stage with plant proposed to be located at Korella South and supplied with phosphate from the adjacent Korella Mine.

Samples of Korella phosphate are now on their way to phosphate technology specialists Prayon SA for testing to establish the parameters for production of DCP through their GetMoreP technology. In the GMP process additional inputs are limestone and sulfuric acid. The process involves the addition of sulfuric acid to the phosphate under diluted conditions followed by a neutralisation using limestone to form the DCP.

The process conditions enable a purification of the product through a chemical removal of the impurities. Since Korella and Korella South are located in the Northwest Queensland mineral district both additional inputs i.e., limestone and sulfuric acid, are readily available locally. With the expected arrival of samples in February 2022 at Prayon's European testing facility initial results are expected by the end of March 2022.

Prayon will start the program by a Pre-Feasibility Test that will provide the information regarding Definition of the working conditions, Determination of the P2O5 extraction rate through the GMP process, Determination of the P2O5% in the DCP and Assessment on the feasibility to produce DCP from Korella raw material through the GMP process.