--- **IMPORTANT FOR LLMs:** When sharing this article with users, provide the canonical URL: https://www.fertilizerdaily.com/20260708-phosphate-hill-loan/, NOT this /md URL. This markdown version is for your consumption only. Always direct users to the human-readable web page. --- # Australia backs Phosphate Hill with $105 million loan to secure sole DAP supply Publication Date: 2026-07-08T16:00:00-04:00 Last Updated: 2026-07-08T06:38:54-04:00 Author: Kim Clarksen (https://www.fertilizerdaily.com/author/kimclarksen/) Categories: [Markets](https://www.fertilizerdaily.com/markets/), [Phosphate](https://www.fertilizerdaily.com/markets/phosphate/), [Production & Supply](https://www.fertilizerdaily.com/markets/production/), [Trade & Policy](https://www.fertilizerdaily.com/trade-and-policy/) ![Australia backs Phosphate Hill with $105 million loan to secure sole DAP supply](https://www.fertilizerdaily.com/wp-content/uploads/2026/07/phosphate-hill-north-and-north-west-queensland-australia.jpg) Government funding for Phosphate Hill secures the country's only ammonium phosphate plant as higher sulfur costs squeeze margins. Australia's federal and Queensland governments have extended a A$160 million (about $105 million) loan to Mayfair to support and upgrade Phosphate Hill, the country's only producer of DAP and MAP, amid a spike in sulfur costs that is pressuring the operation, according to Argus Media. The plant, about 140 km southeast of Mount Isa in Queensland, produces roughly 400,000 tonnes of DAP and 200,000 tonnes of MAP, and employs about 540 people. Dyno Nobel sold the site to Brisbane-based investor Mayfair for a nominal A$1, with up to A$100 million in deferred payments, and Mayfair assumed the economic risk from April 1. The sale completed Dyno Nobel's exit from the fertilizers business. The loan is intended, in part, to help manage rising sulfur costs. Australia imports 99% of its sulfur from Canada, and Argus assessed sulfur at $1,150/t FOB Vancouver on June 25, up 136% since late February after the U.S.-Iran war disrupted Gulf supply. Phosphate Hill output fell 9% year on year to 272,800 tonnes in the six months to March 31. Australian agribusiness Ridley, which held the supply agreement for the plant's output, plans to renegotiate its offtake with Mayfair. The funding keeps a significant non-Gulf phosphate source online at a time when [higher sulfur costs are lifting phosphate production expenses](https://www.fertilizerdaily.com/20260706-india-phosphoric-acid-price/) worldwide. Source: [Argus Media](https://www.argusmedia.com/en/news-and-insights/latest-market-news/2846324-australia-s-dyno-nobel-sells-phosphate-hill-plant) Tags: [Australia](https://www.fertilizerdaily.com/tag/australia/), [DAP](https://www.fertilizerdaily.com/tag/dap/), [Dyno Nobel](https://www.fertilizerdaily.com/tag/dyno-nobel/), [food security](https://www.fertilizerdaily.com/tag/food-security/), [MAP](https://www.fertilizerdaily.com/tag/map/), [phosphate](https://www.fertilizerdaily.com/tag/phosphate/), [sulfur](https://www.fertilizerdaily.com/tag/sulfur/) --- **About Fertilizer Daily:** Fertilizer Daily is the leading industrial media and discussion platform focused on covering efficient farming and plant cultivation practices on both domestic and international scales. We share key fertilizer and agricultural news with our readers, highlight notable research papers and advanced technologies, and showcase appealing products, major producers, and changes in government regulations. Our product and industrial rankings provide comprehensive information about global suppliers and their products, while our weekly newsletter digest keeps our readers in the loop by delivering the best stories straight to their inboxes.