Avenira secures four-year offtake for Wonarah phosphate to China
Published by Oliver Kleinschmidt,
Deputy Editor
World Fertilizer,
Avenira Ltd has entered into a four-year phosphate rock offtake and Mainland China distribution agreement with Hebang Biotechnology (Hong Kong) Investment Ltd for phosphate rock from the Wonarah Phosphate Project in Australia.
The agreement establishes an annual offtake quantity of 500 000 wet tpy over an initial four-year term from commercial commencement, covering more than 80% of the project’s expected annual direct shipping ore (DSO) production of approximately 600 000 tpy. Signed ahead of planned pre-strip activities at Wonarah, the deal establishes a material long-term sales pathway and signals commercial momentum at the project level.
The agreement delivers three core commercial benefits for Avenira:
- Long-term offtake framework and pathway to market: a 500 000 tpy offtake framework secured ahead of planned pre-strip activities at Wonarah, providing a long-term sales pathway for a substantial portion of DSO production.
- Established access to Mainland China: Hebang acts as Avenira’s exclusive distributor in Mainland China, giving Avenira access to Hebang’s downstream industry relationships and distribution network. Exclusivity is contingent on Hebang purchasing at least 90% of the available offtake quantity in each contract year.
- Pricing upside with alternative market flexibility: Avenira retains the ability to pursue superior bona fide third-party offers outside Mainland China, subject to Hebang’s right to match, preserving optionality as markets develop.
Deputy Chairman Brett Clark commented: "Securing a long-term offtake framework for 500 000 tpy represents an important commercial milestone for Wonarah and provides a substantial pathway into the Mainland China market through Hebang's established capabilities and distribution network."
The agreement remains subject to conditions precedent including product qualification, project approvals, payment credit support from Hebang, and regulatory and shareholder approvals under ASX Listing Rule 10.1 and Chapter 2E of the Corporations Act, with all conditions required to be satisfied or waived by 30 September 2027.
Read the article online at: https://www.worldfertilizer.com/phosphates/17092026/avenira-secures-four-year-offtake-for-wonarah-phosphate-to-china/