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Phosphate productionand concentrate reserves are spread across China, Russia, the MiddleEast and North Africa.
Chinais the largest exporter of phosphate fertilizer, with Russianot far behind. The largest phosphate concentrate reserves, which arenecessary for the production of LFP (lithium-iron-phosphate)batteries, are in Morocco followed by other Middle Eastern and NorthAfrican (MENA) countries. These LFP batteries are becoming prominentin EVs (electric vehicles) as well as energy storage systems. The Westhas typically relied on these suppliers for its phosphate but asgeopolitical concerns emerge, many North American and Europeancompanies are eager to have a phosphate source closer to home.
China and Russia haverecently suspended or minimized exports of phosphate, which is provingproblematic to the supply chain and for manufacturers relying onChinese phosphate. Similarly, the phosphate concentrates in the MiddleEast and North Africa are dependent on geopolitical stability that isoften fluctuating.
When you take allthese factors into consideration, it’s apparent that the phosphatemarket is in need of a Western supplier that is stable, high qualityand addresses environmental concerns.
Canada-Based AriannePhosphate Checks All The Boxes
Arianne Phosphate Inc. (OTCMKTS: DRRSF) is apromising phosphate mining company that can help meet the growingdemand for phosphate used in batteries and fertilizer. The company’sLac à Paul project in Quebec, Canada, is a response to the growingglobal demand for phosphate, which is increasing by 2% to 3% eachyear for agricultural demand and, could be considerably higherwhen LFP batteries are taken into account.
The Canada-based companyadheres to stricter environmental, social and corporate standards,aligning with North American and European agendas, and is settingitself apart from Chinese, Russian and MENA competitors.
One major edge Ariannesays it has is, deposit is igneous which allows it to produce aconcentrate higher than 90% of the world’s phosphate, which ishoused in sedimentary rock. This allows Arianne to produce ahigh-purity and low-contaminant phosphate concentrate ideal for use inbatteries and fertilizer.
Arianne is also dedicated to sustainable practices to helpoffset the carbon footprint of processes within the supply chain. Forexample, battery production is an energy-intensive process so it iscrucial to minimize carbon emissions as much as possible duringphosphate mining. Arianne takesits responsibility seriously. Hydroelectricity — a clean,green, renewable energy source — will provide 75% of all energyrequired for the Lac à Paul project. Arianne also has followed agreenhouse gas emissions accounting program since 2010 to help reduceits ecological footprint. The company is committed to being sacarbon-neutral as possible.
Further, Arianne is considering how its miningaffects local communities. On June 12, 2015,the company signed a cooperation agreement with three FirstNations — indigenous
Canadian peoples — for the exploration and preconstructionphase of the Lac à
Paul project with ongoing negotiations to conclude its impactand benefits
agreement. The Company says it is determined to adhere to bestpractices and maintain
its strong social license among the population tooperate.
Duringthe seven-year downturn in phosphate prices from 2012 to 2019, Ariannecontinued to advance its project, receiving all necessary permits fromthe government, signing various MoUs and some initial offtakes. TheLac à Paul project is a fully permitted, shovel-ready project.
As European and NorthAmerican companies pivot away from their overdependence on Chinese,Russian and MENA suppliers, Arianne Phosphate may be well-positionedto fill the supply gap.
Featured photo by Aedrian on Unsplash
This postcontains sponsored advertising content. This content is forinformational purposes only and is not intended to be investingadvice.
ARIANNE PHOSPHATE INC. ( www.arianne-inc.com )owns the Lac à Paul phosphate deposit in Quebec, Canada. Fullypermitted and shovel ready, the asset is among the world’s largestgreenfield deposits, capable of producing an environmentally friendlyphosphate concentrate. Due to the nature of its high-purity,low-contaminant product, Arianne’s phosphate can be used to producefertilizer as well as meeting the technical requirements of specialtyapplications such as the lithium-iron-phosphate (LFP) battery. The Lacà Paul deposit is rare due to its geographic location and geologicalstructure. Arianne Phosphate is listed on both the TSX-V: DAN and the OTCQX: DRRSF .
This post contains sponsoredadvertising content. This content is for informational purposes onlyand is not intended to be investing advice.
Thisinformation contains forward looking statements. All statements, otherthan statements of historical fact, included herein, including withoutlimitation, statements regarding potential mineralisation andreserves, exploration results and future plans and objectives ofArianne Phosphate Inc, are forward-looking statements that involvevarious risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from Arianne Phosphate Inc’s (“AriannePhosphate” or the “Company”) expectations are disclosed underthe heading "Risk Factors" and elsewhere in Arianne PhosphateInc’s documents filed from time-to-time with the TSX Venture andother regulatory authorities.
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