Aguia’s 100%-owned Brazilian subsidiary, Águia Fertilizantes S.A., has signed a 10‑year binding lease agreement with Dagoberto Barcelos S.A. (DB) to lease DB’s existing processing plant near Caçapava do Sul, Brazil, with an option to extend for a further 10 years. Currently, the plant operates at approximately 100,000 tonnes per annum, but by adding a hammer mill, a second drying unit and making minor upgrades, production could be increased to up to 300,000 tonnes per annum.
Under the terms of the agreement, Aguia (ASX:AGR) will pay a one-off entry fee of BRL$5 million (A$1.4 million) to reimburse DB for planned capital works and the costs incurred from ceasing plant operations. In addition, a monthly lease payment of BRL$163,000 (A$43,000) will be payable, commencing six months after the signing of the lease. Aguia will also implement the necessary upgrades to enhance production capacity.
Initially, the company plans to process Pampafos ore at the DB plant, while ongoing evaluations of its nearby 100%-owned Mato Grande and Passo Feio deposits – located within a short distance of the facility – may provide alternative feedstock options. The Brazilian phosphate market presents significant potential, particularly in Rio Grande do Sul, which is entirely dependent on imports costing around A$344 per tonne. Aguia expects to receive between A$150 and A$160 per tonne for its high-grade product.
Executive Chairman Warwick Grigor said the lease agreement is a major step forward for Aguia’s Brazilian operations, with initial processing expected to commence in Q3 2025. The company is also in negotiations with another processing facility in the region to further expand its production profile.
