Aguia Resources Limited (ASX: AGR), a multi-commodity resources company with phosphate projects in Rio Grande do Sul, Brazil, and gold projects in Bolívar, Colombia, has issued an update on its Três Estradas Phosphate Project (TEPP). The company reported a significant judicial development, with the Third Panel of the Federal Regional Court for the 4th Region (TRF4) partially upholding appeals against Aguia and the environmental regulator, FEPAM. This decision, based on a majority opinion, declared the environmental licensing for TEPP invalid, reportedly on the stated basis that operations had not commenced. Aguia’s legal team will file a motion for clarification, asserting that operations have indeed begun and that a suspension would cause material operational harm.
Despite the judicial challenge, Aguia is progressing with its operational and sales initiatives. The company has stockpiled approximately 25,000 tonnes of pre-processed phosphate ore in anticipation of El Niño-related heavy rainfall, with an additional 1,600 tonnes of processed ore available for sale. These reserves are expected to support sales for the next six months at current production rates. Aguia also confirmed 11,000 tonnes in long-term sales agreements, contingent on working capital finance, with local bank SICREDI having approved credit for the prospective customers. Installation of a 25 kg bagging machine by mid-October 2026 is planned to broaden market access to smaller-scale agricultural producers.
Managing Director and CEO Timothy Hosking highlighted strong producer engagement in southern Brazil and Uruguay. The company recently attended the Expointer agricultural fair and met with Uruguayan agricultural producers and officials to discuss the introduction of its Pampafos product, with registration by Uruguay’s Ministry of Livestock, Agriculture and Fisheries expected by mid-October 2026. Aguia noted significant local support from government authorities and agricultural federations, underscoring the project’s positive impact on local employment, with approximately 90% of direct and indirect employment generated in the Lavras do Sul and Caçapava do Sul regions.
The company stated it does not expect the court decision to interrupt its ongoing operations, which continue under a separate operating licence for the Caçapava processing facility. Aguia remains committed to advancing its operations, upholding the legality and validity of its environmental licensing process with the support of FEPAM and other key stakeholders, while continuing to contribute to local economic development.
