Australia's Avenira Secures 500,000 tpa Offtake for Wonarah Phosphate Rock to China

en.Wedoany.com Reported - On September 16, Australia's Avenira signed a long-term offtake and mainland China distribution agreement for Wonarah phosphate rock with Hebang Biotechnology (Hong Kong) Investment Limited, a subsidiary of China's Hebang Biotechnology. The agreement has an initial term of 4 years, commencing upon the start of commercial production at the project, with an annual offtake volume of 500,000 wet tonnes per full contract year, covering more than 80% of the Wonarah project's expected direct shipping ore (DSO) production of approximately 600,000 tonnes per year. The agreement has been announced on the Australian Securities Exchange.

Under the agreement, Hebang will obtain exclusive distribution rights for Wonarah phosphate rock in the mainland China market, subject to meeting annual minimum purchase requirements, with no less than 90% of the available offtake volume to be purchased in each contract year. Product pricing adopts a market-linked mechanism and includes a minimum net FOB back-price clause; Avenira may still seek third-party sales opportunities outside mainland China, and Hebang holds matching rights under certain circumstances.

The Wonarah project is located in Australia's Northern Territory. Avenira currently plans to develop it first using a direct shipping ore model, with a target annual production of approximately 600,000 tonnes. The development arrangements previously announced by the company show that the project is scheduled to commence production in the fourth quarter of 2026 and aims to start exports by June 30, 2027. Initial exports are planned at approximately 25,000 tonnes per month, with product intended for shipment via the Port of Darwin.

The project's currently planned initial mine life is approximately 23 months, and Avenira is simultaneously advancing subsequent resource development and extending the production period. This long-term offtake of 500,000 tonnes per year covers the vast majority of expected initial production, establishing the primary sales channel for the project's transition from development stage to commercial production. In addition to phosphate rock's use in the traditional phosphate fertilizer industry chain, Avenira also plans to develop follow-on markets for the phosphate and lithium iron phosphate industry chains.

The agreement remains subject to a number of conditions precedent, including product qualification testing, project-related approvals, Hebang providing payment credit support, and obtaining relevant shareholder and regulatory approvals in accordance with Australian Securities Exchange listing rules and the Corporations Act. The existing arrangements require the above conditions to be satisfied or waived no later than September 30, 2027.

Hebang currently holds approximately 49% of Avenira. Following the signing of this 4-year offtake agreement, the relationship between the two parties has extended from equity investment to product offtake and distribution in the Chinese market. The core chain of Wonarah's first-phase commercial development has now formed a sales pathway of "mine development—DSO production—Port of Darwin export—Chinese market distribution."