Gutnick, Wengfu plan fertiliser company

Mining industry entrepreneur Joseph Gutnick says he is hoping that a new phosphate joint-venture with a Chinese company will create a fertiliser company in Australia to eventually rival Incitec Pivot.

Mr Gutnick's US-listed Legend International last week entered into a deal with Chinese fertiliser supplier Wengfu Group to investigate the development of a phosphate mine and plant near Mount Isa in Queensland.

Mr Gutnick told the Sky News Business channel on Sunday that Wengfu had great experience, expertise and export connections, and was ideally placed to build a beneficiation plant and phosphoric acid plant. Legend International will mine the phosphate rock.

Beneficiation is the process of reducing ore to particles that can be separated into mineral and waste.

Mr Gutnick said feasibility studies were under way.

"We're very confident that this beneficiation plant and phosphoric acid plant and the added-on value products will come into fruition and start next year," he said.

"We think this (deal) is a company-maker, and we believe it has tremendous potential, and we're confident we'll be another fertiliser company in Australia.

"We have one in Incitec Pivot, and we're confident we're going to become the second one."

Mr Gutnick said Legend International has also established links with IFFCO, the largest fertiliser consumer in India.

Mr Gutnick said that given the huge populations of China and India, demand for food, and consequently, fertiliser was enormous.

"We'll be able to export to India, to China and around the world so the sky's the limit."

Mr Gutnick said he hoped to list Legend International in Australia in the first quarter of next year.