Canadian exploration company GrowMax, in which Indian Farmers Fertilizer Co-operative Ltd (IFFCO) has a 20 per cent strategic interest, is acquiring an additional 10,000 hectares phosphate mining concession in Peru.
GrowMax, a subsidiary of Canada-listed Americas Petrogas Inc, until recently was pursuing only a potash brine project in the north-western coastal but arid Piura province of Peru. IFFCO sources told Business Line that GrowMax’s potash project was set to be expanded to phosphate also. The explorer has completed its potash resources assessment and has hired a German consultant to assess its phosphate resources. Assessment is expected to be completed by November.
GrowMax will raise around $20 million to fund pre-mining activity before an IPO. In four concessions it has a total area of 2.02 lakh acres. It has drilled 10 potash wells and 15 phosphate wells so far. An additional 20 phosphate wells are being drilled. Proximity to infrastructure — a container and bulk terminal nearby and a highway — will bring down operating costs and capital investment for thin overburden layer. GrowMax’s potash project will be through solar evaporation processing of brines, given its sunny and airy location (6 degrees south of the equator in the Sechura Desert near Pacific Ocean).