Mid cap plays like CF Industries Holdings, Inc. (NYSE:CF), currently trading at $144.69, and which in ‘10 sold 1.9 million tons of phosphate fertilizers, and Mosaic Co (NYSE:MOS) currently trading at $52.16, which mines phosphate rock in Florida, are good investor examples about the very lucrative world of phosphate fertilizer, but looking at Australian small cap phosphate miner Legend International Holdings, Inc. (OTC:LGDI); there’s an example playing out that illustrates phosphate mining isn’t just a ‘find, dig, and sell’ proposition.

First, all agriculture companies globally depend on phosphate fertilizer to raise crops and its value, based on purity and market prices, fluctuates like gold. With that said, how can LGDI, which has land with a prospective for phosphate, diamonds, and base metals, that covers 517,000 acres in Queensland, Australia, and 4.2 million acres in the Northern Territory, Australia, have come upon such hard times in share valuation?

The stock was trading in the $0.30 range on Nov 18 and is currently trading in the $0.08 range; a loss of 73.3% in six weeks. What happened?

Well three things from what I can make out… 1) the Company, though its current assets exceed liabilities, had a ‘weak’ last quarter overall; 2) it ran into ‘community’ problems after it was given approval for a second mining lease in the North West Queensland Minerals Province and premier Anna Bligh play; and 3) corporate management seems ‘quiet’ on the matter.

From what I read in a mining magazine, the play could have 200 million tonnes of mineral reserves in the area and an operational life of 60 years. Well that certainly is good.

However according to the North West Star, the Mount Isa City Council has asked the Queensland environmental department only approve the deal if LGDI provides accommodation for its workers in "mixed use housing in Mount Isa urban areas" and everything has ground to halt while the local government and the Company; talk.

Meanwhile, the shares have continued losing value and shareholders can’t be happy about that. I didn’t see any ‘official’ news from the Company on negotiations or talks and strongly encourage management to embrace some corporate communications and publicly address the status of the matter. One can only hope… http://www.smallcapnetwork.com/Phosphate-and-the-Big-Business-of-Fertilizer-LGDI-CF-MOS/s/via/14/article/view/p/mid/1/id/452/