Great Quest (GQ.V) has announced it has signed an agreement with Société Africaine Développement Agricole, a Mali-based group, whereby the latter will purchase 95% of Great Quest’s planned production of 35,000 tonnes per year of phosphate. The production mix will consist of 25,000 tonnes per year or high-grade phosphate with a targeted average grade of 35% P2O5 and 10,000 tonnes of phosphate at a grade of 27% P2O5. The price setting for this offtake agreement will happen based on the import price of DiAmmonium Phosphate. SADA will also contribute 33% of the construction capital.
Great Quest’s production facility will now be improved to produce granules, whereby the direct application phosphate will be mixed with nitrogen and potash (which will be provided by SADA). This is a major step forward for Great Quest, but the geopolitical risks in northeastern Mali shouldn’t be underestimated, even though the region has calmed down lately.
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Disclosure: The author holds no position in Great Quest. Please see our disclaimer for current positions.
