In what the company is calling a “major breakthrough,” PhosCo (ASX: PHO) has received government approval for the Gassaat phosphate exploration permit in Tunisia.

The Consultative Committee of Mines (CCM) approval to explore Gassaat is seen as key to developing Tunisia’s northern phosphate basin, with a formal grant now pending subject to final approval from the Ministry of National Defence.

The Gassaat permit includes a Chaketma phosphate mineral resource estimate of 146 million tonnes at 20.6% phosphorus pentoxide, as well as additional phosphate targets immediately north of the deposit.

MoU signed

The company has now entered into a memorandum of understanding (MoU) with the Tunisian Ministry of Industry, Mines and Energy and the European Bank for Reconstruction and Development (EBRD).

As well as exploring and developing Tunisia’s northern phosphate basin hub, the MoU will see the parties collaborate on processing technology studies to convert phosphogypsum into inert materials.

The MoU also has a strong focus on enhancing regional development through support for communities and small and medium enterprises.

Pioneering agreement

Managing director Taz Aldaoud said the pioneering agreement is a first for the country’s phosphate industry and will see PhosCo work with the EBRD to finance a feasibility study and develop a financing package for the project.

“We are deeply honoured by the trust placed in us by the Tunisian government, as evidenced by the approval of PhosCo’s Gassaat permit application and the signing of the MoU with PhosCo and EBRD,” Mr Aldaoud said.

“We’re particularly mindful of the critical role phosphate plays in addressing global food security concerns [and] this project not only aligns with that crucial need but also emphasises our commitment to positive community impact.”

‘Shared commitment’

Under the MoU, the Ministry and the EBRD will align the interests of all stakeholders for the financing, development, construction and operation of phosphate processing facilities in Tunisia’s northern basin.

“This collaborative effort, backed by the Government and EBRD, underscores our shared commitment to responsible development that benefits the local community, the region and contributes to global food security,” Mr Aldaoud added.

“We’re excited about the potential this project holds and are committed to its successful and sustainable implementation.”

Sekarna approval

The news follows the CCM’s approval of PhosCo’s nearby Sekarna project last month – the first-ever phosphate permit authorised 100% to a foreign investor – where formal gazetting is expected imminently.

MarketsAndMarkets reports that the global phosphate market is valued at around $280 billion in 2024.

Backed by government policies and subsidies to promote further fertiliser utilisation, this is projected to grow at an annual compound rate of 3.9% and reach approximately $340b by 2029.