North Queensland-based manufacturer, Cleveland Bay Chemical Company, is one step closer in its bid to construct a production facility to manufacture animal feed supplement dicalcium phosphate (DCP) after receiving grant funding from the Queensland Government.

Once operational, the manufacturing facility would be the first in Australia to produce this animal feed additive and serve to displace foreign imports.

The company received an unspecified amount to progress the project as part of the Queensland Government’s Backing Business in the Bush Fund.

Announced on Monday, the fund provides financial support for small and medium sized enterprises ranging from $500,000 to up to $2 million.

The funding will enable Cleveland Bay Chemical Company to construct a state of-the-art facility in Townsville dedicated to the production of DCP.

The company currently manufactures aluminium sulphate (liquid alum) and sulphuric acid solutions for a range of industries such as water and waste treatment and mining and industrial.

Queensland Deputy Premier, Treasurer and Minister for Trade and Investment Cameron Dick said the government was delighted to back regional businesses and support their expansion.

“It is important that small business across our vast state, including in regional, remote and rural Queensland, receive the support they need to meet the specific challenges they face and to capitalise on new opportunities,” Mr Dick said.

“We are proudly backing homegrown Queensland bush businesses, providing funding support so they can do what they do best – grow their regional economies and create good jobs.”

In November last year the company signed a Memorandum of Understanding with mining company, Centrex, which – through its subsidiary Agriflex – is progressing the Ardmore Phosphate Project located in northwest Queensland.

In a statement released to the ASX, Centrex CEO and managing director Robert Mencel said local production of DCP would serve as a vital replacement for imports, primarily sourced from China.

“We are excited to see Cleveland’s innovation being recognised through this grant funding, which will help facilitate the construction of a dedicated DCP facility,” Mr Mencel said.

“Our ongoing MOU with Cleveland presents a valuable opportunity to diversify our revenue base with the addition of high-value products like DCP, while also supporting the growth and self-reliance of Australia’s agricultural sector with locally produced solutions.”

The technical work on the production of DCP and other valuable by products remains ongoing.

Following further technical success, marketing activities and economic modelling will be undertaken to establish the optimal scale for the new facility.

If these efforts prove successful, the construction of the facility is anticipated to commence in quarter two of CY2025.

Cleveland Bay Chemical Company managing director Geoff Whebell said following the signing of the MOU that the business was keen to explore further opportunities to process raw phosphate.

“Cleveland Bay Chemical Company is pleased to partner with Centrex to develop value added products from their high quality local mineral resource,” Mr Whebell said in a statement.

“Phosphate has long been a critical mineral of interest to us and we see great opportunities working together to realise the full potential of Ardmore’s exceptional resource.”

Phosphorus is crucial for cattle, yet many regions in northern Australia face significant nutritional limitations due to phosphorus deficiency.

In addition to DCP, the MOU also encompasses the potential research of DCP by-products, including Monocalcium Phosphate (MCP) and Monodicalcium Phosphate (MDCP).

Meat & Livestock Australia (MLA), the primary livestock organization in Australia, has undertaken extensive educational and R&D initiatives to tackle subclinical phosphorus deficiency in Northern regions of the country. This effort has led to a growing interest among cattle farmers who have expressed interest in utilising MDCP.

Source: Centrex, Queensland Government