In an exclusive interview with First Phosphate (CSE:PHOS) (OTC:FRSPF)(FSE:KD0) a mineral development company dedicated to extracting and purifying phosphate for the Lithium Iron Phosphate (LFP) battery industry, we explore their unique approach, strategic advantages, and growth plans within the rapidly expanding LFP battery supply chain.
First Phosphate Corp. differentiates itself by its commitment to producing high purity phosphate material in a responsible manner with a low anticipated carbon footprint. As CEO John Passalacqua explains, “First Phosphate is dedicated to building an integrated downstream supply chain that goes from phosphate mine to the creation of purified phosphoric acid (PPA) and eventually to the production of lithium iron phosphate (LFP) cathode active material.”
Geographic Advantage and Mineral Claims
Holding over 1,500 square kilometers of royalty-free land claims in the Saguenay-Lac-St-Jean Region of Quebec, Canada, First Phosphate Corp. enjoys a strategic location with significant benefits. Passalacqua elaborates, “We are at 70 kms from the deep sea port, on major highway and near major infrastructure and electricity.”
Quebec’s reputation as a friendly mining jurisdiction and an electric vehicle hub for North America further positions First Phosphate Corp. to meet the growing demand for LFP battery materials. “Saguenay-Lac-St-Jean is already the aluminium valley of north america so tremendous infrastructure exists there already right down into the heart of automotible heartland of north america,” adds Passalacqua.
Anorthosite Igneous Phosphate Rock
First Phosphate Corp.’s properties consist of rare anorthosite igneous phosphate rock, yielding high purity phosphate material devoid of harmful elements. This sets the company apart from other phosphate producers. Passalacqua explains, “95% of the World’s Phosphate is found in heavy metal laden Sedimentary Rock. Only 4% of the World’s Phosphate is found in Clean Igneous Carbonatite Rock. Only 1% of the World’s Phosphate is found in Even Cleaner Igneous Anorthosite found mostly only in Quebec, Canada.”
The purity and quality of First Phosphate Corp.’s phosphate rock contribute significantly to the production of battery-grade purified phosphoric acid for the LFP battery industry. According to Passalacqua, “Up to 90% of feedstock can be converted to purified phosphoric acid (PPA) for LFP battery, allowing strict focus on LFP battery technology client downstream, with mine size 8-10x smaller, Capex focused on value added, and enabling a full circular economy.”
Pilot Plants and Processing
First Phosphate Corp. has established a Phosphate Concentrate Pilot Plant and a Purified Phosphoric Acid (PPA) Pilot Plant to optimize their metallurgical processes and produce high-quality phosphate materials. Passalacqua highlights, “The pilot plant optimises the Company’s metallurgical process for the production of a super high grade phosphate concentrate approaching 41% P2O5. The pilot plant has produced over 900 kilograms of apatite concentrate which have been sent to the facilities of Prayon SA (“Prayon”) in Belgium for the production of battery-grade purified phosphoric acid (“PPA”). The battery-grade PPA produced will then be sent to Company partners for homologation into their LFP cathode active material production processes. The pilot plant also produces valuable, marketable recoveries of ilmenite and magnetite.”
The company’s advanced mining and refinement methods ensure an environmentally clean and circular approach to phosphate production. “We are able to fully recycle all Gypsum into building materials using our partner, Rapidwall,” states Passalacqua.
Key Projects and Properties
First Phosphate Corp. is making significant progress on its key projects, such as the Bégin-Lamarche Property and the Lac à l’Orignal Flagship Property. Passalacqua shares, “A 26,000 m drill program was completed this winter where we found exceptional high grade phosphate in 4 main areas over a 3 km magnetic strike zone. We are currently in the process of establishing a mineral resource estimate and Preliminary Economic Assessment.”
Recent News and Developments
The recent addition of apatite (phosphate) to the Critical and Strategic Minerals List of Canada has impacted First Phosphate Corp. positively. “It affects flow through raises. It affects access to government funding and visibility for initiatives within the government,” explains Passalacqua.
First Phosphate Corp. has also signed Memorandums of Understanding with Groupe Goyette and Craler Inc. to enhance their logistical footprint and global freight competencies. These agreements support the company’s growth strategy, as Passalacqua elaborates, “Many projects in critical minerals do not have the infrastructure around them to make it into viable production but First Phosphate does. Through these key players and others in the region of Saguenay-Lac-St-Jean, we are better able to attain economic viability which will be more broadly demonstrated in our upcoming PEA.”
ESG and Sustainability
First Phosphate Corp.’s commitment to responsible and sustainable operations is evident in their ESG practices. “We are hoping to almost fully recycle all tailings and waste rock into valuable secondary materials. We can already produce saleable quantities of iron (magnetite) and titanium (ilmenite). We can also recycle the gypsum from the phosphoric acid production since it is very pure,” states Passalacqua.
As investors increasingly prioritize ESG factors, First Phosphate Corp. positions itself as a responsible and sustainable choice. “As above, we hope to use the most sustainable practices in the industry,” affirms Passalacqua.
Market Outlook and Growth
With the demand for LFP batteries expected to grow significantly, First Phosphate Corp. plans to scale its operations strategically. “We plan to enter with small projects with lower capex in three integrated verticals (mine, PPA secondary transformation and LFP CAM production) with leading industry partners to establish and then to grow slowly from there,” explains Passalacqua.
The company’s long-term growth plans involve expanding its presence in the global LFP battery supply chain. “We are using partnerships with leading industry players in various verticals to work quickly on building a supply chain for North America,” says Passalacqua.
A Compelling Investment Opportunity
When asked what sets First Phosphate Corp. apart as a compelling investment opportunity, Passalacqua emphasizes, “We are fully dedidated to phosphate and LFP battery industry and have a significant bench of global leading professionals focus on that day in and day out.”
He adds, “We are perhaps one of the better positioned players in North America for the oncoming onslaught of LFP battery demand coming to North America. 70% of all batteries output in China are LFP. That trend is on its way hear like tsunami. We are positioned and have been positioning for 2 years now.”
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
I specialize in the mining industry, focusing on top global mining stocks. My reporting covers the latest industry news, company/project developments, and profiles of key players. With a degree in finance and economics from the University of Toronto, I’ve contributed to a wide range of industry publications. Beyond my professional pursuits, I have a keen interest in global business and a love for travel.
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