Australia-based Minemakers has signed a non-binding memorandum of understanding (MoU) with Indian-firm NMDC to develop the Wonarah phosphate deposit in Northern Territory, Australia.

Under the terms of the MoU, NMDC will work in collaboration with Minemakers to conduct a joint feasibility study into the agreed aspects of the full development of Wonarah deposit.

The development will include mine and downstream processing facilities to produce beneficiated rock phosphate for export, phosphoric acid and finished fertiliser products such as diammonium phosphate and monoammonium phosphate.

Minemakers and NMDC will also sign a joint venture agreement (JVA) that will govern the completion of bankable feasibility and finance development of Wonarah and the downstream fertiliser manufacturing facilities.

The terms of the JVA will be negotiated during the advancement of the feasibility study by the fourth quarter 2011.