Mining and exploration firm Korab Resources has secured all permits required to develop a new phosphate mine in Australia.
Korab claims that the new phosphate mine at the Geolsec project has some of the best logistics and basic infrastructure of any rock phosphate project in Australia.
The mine is situated 2km from Batchelor town, about 70km south from the port of Darwin, which is the capital of the Northern Territory.
Korab noted that it had started negotiations with users of rock phosphate, fertilisers and soil improvement products as well as with distributors and contractors providing aerial application services of fertilisers and soil improvement products in the Northern Territory, Western Australia and Eastern States.
The start-up costs of the mine are low because of its geology and location and the company anticipates that it will cost less than $300,000 to begin production of the direct application phosphate fertiliser.
Korab had previously announced high-grade assays from the phosphate deposit at about 39% phosphorous.
The company said the rock is highly reactive making it ideal for direct application to acidic soils, which are common along Australian coastline.
Korab expects that operating costs of the mine will be under $100 per tonne of rock, giving the company a high profit margin.
Korab operates various development projects in Ukraine, Western Australia and the Northern Territory, where it intends to produce gold, phosphate rock and magnesium.
The company's developments include Bobrikovo gold and silver project in Ukraine, Winchester deposit and GeolSec rock phosphate deposit.