Fertoz Ltd. has signed a 10-year contract to continue its rock phosphate operations at Deerlodge, Montana, U.S.
The phosphatic fertilizer manufacturer negotiated the long-term extension with Montana Grey Rock, giving it exclusive marketing rights to the mine.
Fertoz has been operating at Deerlodge with organic certification since 2018 under a five-year contract. Rock material from Deerlodge has high phosphate levels with low metal content capable of organic certification. It is hauled from Deerlodge to Butte, Montana to Fertoz’s processing partner, Centennial, for crushing, screening and sizing.
Deerlodge will support the growth of the company’s Fertify fertilizer pellets, which is set to commence production in early 2023, and supply its new and existing U.S. customer base.
Securing a 10-year lease extension at Deerlodge follows Fertoz’s recent announcement of confirmed sales of 18,000 tons of its Fertify fertilizer pellet product and a 10-year offtake agreement with 120,000 tonnes of rock phosphate in the first five year in addition to its existing agreement with Replenish Nurtients Ltd. for 10,000 tonnes/year, which has four years left to run. These agreements position Fertoz to deliver 40,000 tonnes of rock phosphate in 2023, which is an expected increase of 230 percent versus 2022 volumes.
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