EBRD Grants €1M to PhosCo to Boost Tunisia’s Gasaat Phosphate Project

PhosCo Ltd has received a major boost in its efforts to advance Tunisia’s Gasaat Phosphate Project with the award of a €1 million (A$1.8 million) grant from the European Bank for Reconstruction and Development (EBRD). The grant, channelled through PhosCo’s Tunisian subsidiary, Himilco, will fund critical development and optimisation activities as the company prepares for its Bankable Feasibility Study (BFS). In addition, PhosCo’s Managing Director, Taz Aldaoud, will personally invest $1.1 million through the exercise of 21.4 million options at five cents each, underscoring strong internal confidence in the project’s long-term prospects. Together, these contributions mark a pivotal step in accelerating one of Tunisia’s most promising phosphate ventures.

The combined funding will enable PhosCo to fast-track key technical and operational initiatives designed to enhance project economics and refine development strategies ahead of the BFS. The EBRD agreement also involves the issue of 150 million options to the bank in two tranches, with 90 million subject to shareholder approval. These options are exercisable at five cents and will expire at the earlier of 120 days following the release of the updated Scoping Study or 31 January 2028. This structure not only aligns EBRD’s interests with the project’s success but also provides PhosCo with greater financial flexibility during its pre-feasibility phase.

The EBRD’s involvement signals strong institutional confidence in both the Gasaat Project and Tunisia’s broader phosphate industry. Tunisia is home to some of the world’s most significant phosphate reserves, but production and development have been constrained in recent years by infrastructure and investment challenges. The Gasaat project, through its focus on sustainability, technological efficiency, and local employment creation, represents an opportunity to revitalize the sector and enhance the country’s standing as a reliable global supplier of phosphate-based fertilizers—an essential input for agricultural productivity and food security.

Moreover, this collaboration reflects EBRD’s ongoing commitment to fostering sustainable resource development across North Africa. The Bank’s support aligns with its regional strategy to promote responsible mining practices, enhance local value addition, and strengthen economic resilience through environmentally sound industrial projects. For PhosCo, the partnership provides not only financial momentum but also technical and institutional credibility that could attract additional investment and strategic partnerships in the coming phases.

The successful progression of the Gasaat Phosphate Project could mark a turning point for Tunisia’s mining sector. By coupling international financing with local commitment, the project has the potential to stimulate economic growth, create skilled jobs, and reinforce Tunisia’s position in the global phosphate market. In the longer term, it could serve as a model for integrating sustainable resource development with regional industrial growth across North Africa.

Mini-Glossary

• EBRD (European Bank for Reconstruction and Development): A multilateral development bank that supports economic transition and sustainable development in emerging economies.
• Phosphate: A mineral used primarily in the production of fertilizers, essential for global agriculture.
• Bankable Feasibility Study (BFS): A detailed technical and financial analysis used to confirm the economic viability of a mining project.
• Options: Financial instruments granting the right to purchase shares at a predetermined price within a specified period.
• Scoping Study: An early-stage assessment evaluating a project’s potential economic and technical feasibility.