ASX-listed Centrex has signed a binding offtake agreement for phosphate from its Ardmore phosphate mine, in Queensland.

Under the two-and-a-half-year agreement with agricultural firm Ravensdown, the company will sell 15 000 t of phosphate in the first year, with the subsequent year’s allocation to be mutually agreed.

Centrex has allocated up to 20% of production at Ardmore towards the offtake agreement with Ravensdown.

“By the signing of this offtake agreement with Ravensdown, we continue to build on fulfilling our offtake strategy and securing high-quality customers for our product. This agreement also continues our expansion of sales of product into the lucrative New Zealand agricultural market. Similar to our other offtake partners, we look forward to a long-term mutually beneficial relationship with Ravensdown,” said Centrex MD Robert Mencel.

The agreement with Ravensdown marks Centrex’ third offtake agreement over the Ardmore project.

Centrex is looking to expand its Ardmore phosphate mine, with the Northern Australian Infrastructure Facility assessing a potential funding participation in the Stage 1.5 expansion which would cost A$31-million and would target a 625 000 t/y production output by using existing facilities on site, as a step towards the Stage 2 capacity of 800 000 t/y of phosphate output.