The European Bank for Reconstruction and Development (EBRD) has awarded a significant grant of A$1.8 million (approximately €1 million) to the fertilizer company PhosCo to advance its Gasaat Phosphate Project in Tunisia. This move is a strong vote of confidence in the project’s potential to contribute to Tunisia’s economy and is seen as a step toward securing sustainable mineral supply chains for the West.
The grant is complemented by a further A$1.1 million investment from PhosCo’s Managing Director, Taz Aldaoud, who exercised his options early to help finance the project. The combined funds of A$2.9 million will be used for high-priority technical work to optimize the project ahead of a Bankable Feasibility Study (BFS).
Key details of the project and the financial arrangement include:
- Project Resource: The Gasaat project already has a significant JORC Resource of 146.4 million tons at 20.6% P₂O₅.
- Projected Output: Over its estimated 46-year mine life, the project is slated to produce 68 million tons of phosphate concentrate at an average rate of 1.5 million tons per annum.
- EBRD’s Potential Future Investment: The agreement includes the issuance of 150 million options to the EBRD, exercisable at 5 cents. If fully exercised, this would result in an additional A$7.5 million investment.
Strategic and Economic Implications
This grant is more than just financing; it signals the EBRD’s belief in the Gasaat project’s potential to deliver substantial economic and social benefits for Tunisia. The backing of a major multilateral bank like the EBRD enhances the project’s credibility and is likely to attract further attention from global fertilizer giants.
The project also aligns with broader strategic goals. As one analysis notes, it offers the West a reliable, non-Russian and non-Chinese supply of essential fertilizer, which is critical for global food security and the green energy transition. The market reacted positively to the news, with PhosCo’s share price experiencing a significant surge.
TunisianMonitorOnline (NejiMed)
