CRP Signs Memo of Understanding with Logistics Provider

NEWS RELEASE 22- 23 November 28, 2022



CHATHAM ROCK PHOSPHATE SIGNS MEMORANDUM OF
UNDERSTANDING WITH LOGISTICS PROVIDER AURIZON

WELLINGTON, New Zealand – Chatham Rock Phosphate Limited (TSXV: “NZP” and NZX: “Chatham”, “CRP”, or the “Company") is pleased to announce that it has signed an MOU with transport group Aurizon Limited to provide logistical solutions for the development of its Korella phosphate operations.

Under the Memorandum of Understanding, Aurizon and CRP’s wholly-owned Australian subsidiary, Avenir Makatea Pty Ltd., trading as Korella Fertilizers (Korella) have agreed to establish a framework for discussing logistical solutions and associated infrastructure investments which Aurizon could provide to support Korella getting its product to market.

Under the MoU, Korella and Aurizon will participate in exclusive discussions for the full pit-to-port logistics solution, including road, rail and shiploading of phosphate rock from Korella North, Korella Central and Korella South (Mines) near Phosphate Hill to Korella’s proposed Round Oak Round Distribution Hub in Cloncurry and onward to the Port of Townsville. This would include provision by Aurizon of terminal and storage services at Korella North, Round Oak Round Distribution Hub Cloncurry, Cloncurry Container terminals, Stuart and Aurizon Port Services terminals at the Port of Townsville.

Earlier this year CRP, through Korella Fertilizers, commenced discussing with Aurizon the provision of logistics services at a Korella transport hub to be established in Cloncurry. These discussions progressed to finalizing a lease on a 22ha site owned by Aurizon on Round Oak Road, Cloncurry that is close to the existing Aurizon Cloncurry Container Terminal.

Subsequently discussions broadened to encompass the complete transport task for Korella Fertilizer’s phosphate and this led to the establishment of the MoU.

Under the MoU, this will include current planning for a rail loading facility to be built at Korella North for bulk loading of 2Mtpa of phosphate from Korella North, Korella Central and Korella South and the establishment of a 5Mtpa bulk phosphate ship loading facility in the Port of Townsville.

With Aurizon’s newly opened Aurizon Port Services facility in the Port of Townsville, the potential for earlier bulk shipments of Korella phosphate as trial cargoes can also be considered.

Aurizon is the major transport and logistics provider to companies operating in Queensland’s North West Mineral Province with existing contracts that include:

• Transport on rail of sulphuric acid in tankers from Mt Isa to Phosphate Hill

• Transport on rail of sulphuric acid in tankers from Townsville to Phosphate Hill

• Transport on rail of elemental sulphur in containers from Townsville to Mt Isa.

• Transport on rail of lead/zinc concentrate from Cloncurry Container Terminal to Townsville

• Transport of cement from Townsville to Cloncurry Container Terminal

• Transport of phosphate concentrate from near Dajarra (150km south of Mt Isa) to Mt Isa by road and then 1000km by rail from Mt Isa to Townsville.

CRP looks forward to progressing Korella Fertilizers, by matching mine development with efficient and flexible transport and logistic solutions.

About Korella Fertilizers

Korella Fertilizers is a Cloncurry, NW Queensland based operation for international phosphate company Chatham Rock Phosphate Limited.

With its Korella phosphate sourced south of Cloncurry at Phosphate Hill, Korella Fertilizers is establishing a distribution hub and a MCP manufacturing plant in Cloncurry to service its rural customer base, especially those in northern Australia.

In parallel the company is working on plans for a 2Mtpa bulk phosphate rail loading facility at Korella North, Phosphate Hill and a 5Mtpa ship-loader in the Port of Townsville.

For further information please contact:

Chris Castle
President and Chief Executive Officer
Chatham Rock Phosphate Limited
64 21 55 81 85 or [email protected]


Neither the Exchange, its Regulation Service Provider (as that term is defined under the policies of the Exchange), or NZX Limited has in any way passed upon the merits of the Transaction and associated transactions, and has neither approved nor disapproved of the contents of this press release.

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