EQS-News

What’s Driving Demand For Phosphate Globally? - Seite 2

European and North American companies primarily rely on North African, Middle Eastern, Russian and Chinese suppliers. The West is waking up to the reality that its phosphate supply is dependent on regions that are geopolitically unstable or that it has rocky relationships with.

For example, the Russia-Ukraine war has caused major disruptions in the agricultural industry — specifically, fertilizer production. Russia and Ukraine account for a substantial portion of the global fertilizer trade. Russia produces 9% of the world’s nitrogen fertilizer, 10% of phosphate fertilizer and 20% of potash fertilizer. The war has disrupted exports and increased the price of fertilizer and agricultural commodities related to fertilizer such as phosphate.

China announced in July that it would extend its export restrictions on phosphate fertilizer through the end of 2022.

In September, the U.S. Department of Agriculture announced it will invest $500 million to increase domestic fertilizer production — double the amount of its previous commitment to curb reliance on Russian and Chinese fertilizer. It is increasingly clear that it would be advantageous to have a significant phosphate supplier in a country with stronger and more stable ties to the West.

Companies like Arianne Phosphate Inc. (TSX-V: DAN) (OTCMKTS: DRRSF), a promising phosphate mining company, are among the few in North America that can respond to the growing demand for phosphate. The company’s Lac à Paul project in Quebec, Canada, is a response to a growing global demand for phosphate for fertilizer, which is increasing 2% to 3% each year.

European and North American markets might be more inclined to rely on a Canada-based mining company than a Russia- or China-based company.

ARIANNE PHOSPHATE INC. (www.arianne-inc.com) owns the Lac à Paul phosphate deposit in Quebec, Canada. Fully permitted and shovel ready, the asset is among the world’s largest greenfield deposits, capable of producing an environmentally friendly phosphate concentrate. Due to the nature of its high-purity, low-contaminant product, Arianne’s phosphate can be used to produce fertilizer as well as meeting the technical requirements of specialty applications such as the lithium-iron-phosphate (LFP) battery. The Lac à Paul deposit is rare due to its geographic location and geological structure. Arianne Phosphate is listed on both the TSX-V: DAN and the OTCQX: DRRSF.