Canada Adds Phosphorus to Critical Minerals List

Highlights:

• Critical Mineral Status: Canada has added phosphorus to its critical minerals list, aligning with actions taken by Australia, the EU, and South Korea, with a US decision expected by 2025.
• Resource Development: Limited Canadian phosphate resources are being developed by companies like Fertoz Limited in British Columbia and First Phosphate in Ontario to meet growing industrial demand.
• Strategic Positioning: Chatham Rock Phosphate Limited (CRP) is strategically positioned to supply low cadmium rock phosphate to North America, leveraging its projects and logistical advantages for competitive deliveries.

Phosphorus Gains Strategic Importance

Canada has officially designated phosphorus as a critical mineral, following similar moves by Australia, the European Union, and South Korea. This addition reflects the growing recognition of phosphorus's strategic importance in various industries. The United States is also considering this designation, with a decision expected by 2025. A bill (S. 3956) has already been introduced in the US Senate to include phosphorus on the Department of the Interior's list of critical minerals.

Limited Resources and New Developments

Canada's phosphate resources are limited, with small sedimentary deposits in British Columbia and extensive but low-grade igneous deposits in Ontario and Quebec. Companies like Australian-based Fertoz Limited are developing small deposits in British Columbia, while Canada's First Phosphate is working on a large-scale deposit in Ontario. In the US, declining phosphate production has shifted focus toward food and fertilizer production, but the demand for high-quality phosphoric acid for lithium iron phosphate (LFP) battery production is expected to increase significantly.

Chatham Rock Phosphate's Strategic Position

Chatham Rock Phosphate Limited (NZX: CRP) is well-positioned to meet this growing demand. CRP's low cadmium rock phosphate projects, including Korella, Chatham Rise, and Makatea, offer logistical advantages due to their proximity to Pacific Ocean ports. This allows for competitive deliveries to the west coast of the USA, including the Port of Longview in Washington State, and to southwestern Canada, such as the Port of Vancouver, BC.

CRP has identified potential customers and logistics solutions for importing its phosphates into North America. The Korella project, with exports from the Port of Townsville, represents CRP's first opportunity to address the increasing demand for phosphate in North America, ensuring a steady supply of this critical mineral for various industrial applications.

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