Chatham signs lease for Distribution Hub in Cloncurry

GENERAL

Wed, Mar 08 2023 08:30 am

NEWS RELEASE 23 05 March 6, 2023

CHATHAM ROCK PHOSPHATE SIGNS LEASE WITH AURIZON
FOR KORELLA PHOSPHATE DISTRIBUTION HUB IN CLONCURRY
WELLINGTON, New Zealand – Chatham Rock Phosphate Limited (TSXV: “NZP” and NZX: “Chatham”, “CRP”, or the “Company") is pleased to announce that it has signed a lease over a 22ha site to establish the Korella Phosphate Distribution Hub in Cloncurry.
The Korella Phosphate Distribution Hub matches the requirements for the Korella North Mine with phosphate road-trained to the Hub for handling and onward shipment by road-train for domestic sales and by rail for export through the Port of Townsville.
The 22ha site, owned by logistics company Aurizon, is on Round Oak Road, Cloncurry, accessible by road trains and close to the existing Aurizon Cloncurry Container Terminal.
As announced last year a Memorandum of Understanding was signed between Aurizon and CRP’s wholly-owned Australian subsidiary, Avenir Makatea Pty Ltd, trading as Korella Fertilizers (Korella) 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 ship loading of phosphate rock from Korella North, Korella Central and Korella South (Mines) near Phosphate Hill to Korella’s Round Oak Road 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.
Under the MoU, this will also 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 bulk shipments of Korella phosphate can commence.
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; and
• 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 more information contact Chris Castle, President and Chief Executive Officer, on 021 558 185 or [email protected] or check out www.rockphosphate.co.nz

Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements.

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.