• PhosCo to raise A$5 million for Tunisia phosphate project
• Funds to advance Gasaat toward bankable feasibility study
• Tunisia targets 14 million tonnes phosphate output by 2030

Australian mining company PhosCo announced on Wednesday it plans to raise A$5 million (approximately $3.5 million) to advance development of its Gasaat phosphate project in Tunisia. The move comes as Tunisian authorities seek to revive the country's phosphate production, a key raw material for fertilizer manufacturing.

The company will raise the funds through a share placement with selected investors. The transaction is expected to close on Feb. 25, after which PhosCo said it would hold A$7.3 million in cash. The funds will finance ongoing exploration, development and technical studies at Gasaat.

A preliminary economic assessment published in 2022 projected annual production of 1.5 million tonnes over a 46-year mine life, requiring total capital investment of $169.5 million. PhosCo said it plans to release updated project metrics and carry out a new mineral resource estimate for Gasaat. Those steps are intended to pave the way for a bankable feasibility study.

"We have achieved exceptional and consistent drilling results, which set the stage for an imminent resource update. This will support an optimized scoping study," Chief Executive Taz Aldaoud said. "These funds will allow PhosCo to move smoothly from the updated scoping study to the bankable feasibility study."

Supporting a sector revival

The acceleration of work at Gasaat comes at a critical time for Tunisia's phosphate sector. Phosphate mining is a pillar of the country's extractive industry, accounting for roughly 2% of GDP, but output has fallen sharply over the past decade. Production stood at 8 million tonnes in 2010, when Tunisia ranked fifth globally, before declining to 3.6 million tonnes in 2023, according to the U.S. Geological Survey.

Compagnie des Phosphates de Gafsa, the country's main producer, has attributed the decline to social and political unrest in the mining areas following the January 2011 revolution. To reverse the trend, Tunisia unveiled a five-year plan in 2025 aimed at increasing national phosphate production to 14 million tonnes by 2030. The strategy includes upgrading production, processing and transport infrastructure.

Gasaat could contribute to that target. Other projects have also been announced in recent years, including Oum Lakhcheb, which has an estimated production capacity of 2.4 million tonnes per year. While reviving the sector remains central to Tunisia's strategy, the plan's success will hinge on tangible progress across ongoing projects.

In a sector historically marked by social unrest, the authorities' ability to contain tensions will also be critical. The broader outlook remains supportive, with global fertilizer consumption expected to rise through 2029, according to the International Fertilizer Association.

Aurel Sèdjro Houenou