PhosMex Corporation

January 24, 2007 08:17 ET

PhosMex Records First Offshore Mineral Mining Concession Ever Granted by Mexico

SANTA BARBARA, CA--(CCNMatthews - January 24, 2007) - PhosMex Corporation today announced that it has received the first coastal mineral mining concession in the Pacific Ocean ever granted by the Mexican Government. This concession, granted for the next fifty years, covers 100 square miles. This new type of mining claim was made possible due to a recent change in the Mexican coastal mining law. The concession contains 250,000,000 tons of phosphate ore (P2O5), which in today's market is worth over 12 billion dollars. The phosphate rock deposit occurs over a wide area in waters approximately 120 feet deep in continental shelf coastal zones of the Mexican State of Baja del Sur de California. The phosphate-bearing formations crop out both onshore and offshore on both the east and west coasts and in the interior of the Baja peninsula. For the most part, the onshore average phosphate content is sub-commercial, due to a high degree of contamination. However, the offshore deposits have much more attractive ore accumulations that are of a higher grade than found onshore. Technological improvements during the past 25 years have made deeper offshore exploration and dredging commercially attractive. PhosMex Corporation believes, with current technology and the current price of phosphate, an offshore dredging operation will be very profitable in today's market, particularly given the location of this project and the markets this deposit can serve.

PhosMex is currently working to partner with a mining company that can develop this huge resource.

Contact Information

  • Richard W. Holmes
    Phone: 704/442-5407
    E-mail: rholmes@ridgewater.com
    or
    PhosMex Corporation
    40 East Alamar Avenue
    Santa Barbara, California 28226