PHOSPHATES

WHY PHOSPHATE

Phosphorus is one of the key elements that are essential for all living things, including bacteria, plants and animals. We get our phosphorus from the food we eat, which in turn comes from the phosphate fertilizers we apply to crops. Phosphate fertilizer is crucial for modern food production and is the defining factor in crop yields. Phosphate is a critical global resource, alongside water and energy.

Phosphorus is a key element for agricultural production and plays multiple roles in plant health, including photosynthesis and the construction of DNA and RNA as well as ATP (adenosine triphosphate), the energy-carrying molecule. Phosphate is a key component in bone health, comprising roughly 1% of average body weight. Lack of phosphorus in plants leads to a decrease in leaf and root size growth, and ultimately lower yields.

NO SUBSITUTE FOR PHOSPHATE

Today the majority of the world’s agricultural fields rely on fertilizers derived from non-organic minerals, including phosphate rock. Phosphate rock is a non-renewable resource and recent studies suggest that the world’s higher quality reserves are being rapidly depleted.

We see a unique opportunity to create value by developing abundant and high-quality marine phosphate deposits by deploying innovative solutions that both sustainable for the marine ecosystems and beneficial for the local communities. We believe that marine phosphates could provide the agricultural industry with a dependable, high quality, and low-cost supply of a critical and non-renewable mineral resource.

GROWING DEMAND

The world population recently exceeded 7.8 billion and is currently increasing by ~75 million people per year at an average rate of 1.15%. By 2050, the world population is expected to grow by a further 34%. To feed a larger and richer urbanized population, world food production will need to increase by 70% in the coming decades.

A recent massive shift in the dietary preferences of the population in the developing countries towards higher protein consumption (meat and dairy products) requires significantly higher consumption of phosphate fertilizers –consumption of meat requires 7 times more grain for stockfeed as a vegetarian diet;

Food security is becoming increasingly dependent on a stable supply of fertilizer minerals and the most critical of them is phosphate. In 2013, China government declared phosphate a strategic mineral;

CONSTRAINED SUPPLY

Arable land is projected to increase by only 4% by 2050 and the yield of existing land is rapidly decreasing due to unbalanced fertilization, pollution, and soil deterioration.

79% of global phosphate reserves are located in countries with high sovereign risk and are controlled by state-owned corporations (Syria, Algeria, Morocco, Egypt, Jordan, and Israel) – high risk of interrupted supplies.

Phosphate is a finite resource, higher quality reserves and high-grade ores are rapidly depleting, and existing facilities have limited capacities to increase production or experience delays in ramping up production (Morocco).

High-grade phosphates are often diverted to domestic fertilizer production and often unavailable on the seaborne market.

GLOBAL TRENDS

Phosphate supply security for net importers (mainly EU) has been recently undermined by the decreased quality of available phosphates, in particular, polluted by heavy metals such as cadmium and uranium. In 2019, the EU introduced new regulations limiting the cadmium content in rock phosphate, mainly supplied from Morocco.

New trends, such as supply lag and quality constraints, are emerging on the global phosphate market. No new large deposits have recently been discovered, and a combination of investment risks with increased exploration uncertainty and the costs of bringing mines into production lead to growing concerns in agricultural economies regarding the security of supply.

Producers, like China and the US, are becoming net importers of phosphates. In response to the growing phosphate demand, several producing countries have taken measures to restrict their exports to ensure sufficient availability of phosphates to meet their internal needs.

PHOSPHATES

WHY PHOSPHATE

phosphate-1

Phosphorus is one of the key elements that are essential for all living things, including bacteria, plants and animals. We get our phosphorus from the food we eat, which in turn comes from the phosphate fertilizers we apply to crops. Phosphate fertilizer is crucial for modern food production and is the defining factor in crop yields. Phosphate is a critical global resource, alongside water and energy.

Phosphorus is a key element for agricultural production and plays multiple roles in plant health, including photosynthesis and the construction of DNA and RNA as well as ATP (adenosine triphosphate), the energy-carrying molecule. Phosphate is a key component in bone health, comprising roughly 1% of average body weight. Lack of phosphorus in plants leads to a decrease in leaf and root size growth, and ultimately lower yields.

NO SUBSITUTE FOR PHOSPHATE

Today the majority of the world’s agricultural fields rely on fertilizers derived from non-organic minerals, including phosphate rock. Phosphate rock is a non-renewable resource and recent studies suggest that the world’s higher quality reserves are being rapidly depleted.

We see a unique opportunity to create value by developing abundant and high-quality marine phosphate deposits by deploying innovative solutions that both sustainable for the marine ecosystems and beneficial for the local communities. We believe that marine phosphates could provide the agricultural industry with a dependable, high quality, and low-cost supply of a critical and non-renewable mineral resource.

GROWING DEMAND

phosphate-4

The world population recently exceeded 7.8 billion and is currently increasing by ~75 million people per year at an average rate of 1.15%. By 2050, the world population is expected to grow by a further 34%. To feed a larger and richer urbanized population, world food production will need to increase by 70% in the coming decades.

A recent massive shift in the dietary preferences of the population in the developing countries towards higher protein consumption (meat and dairy products) requires significantly higher consumption of phosphate fertilizers –consumption of meat requires 7 times more grain for stockfeed as a vegetarian diet;

Food security is becoming increasingly dependent on a stable supply of fertilizer minerals and the most critical of them is phosphate. In 2013, China government declared phosphate a strategic mineral;

CONSTRAINED SUPPLY

phosphate-6

Arable land is projected to increase by only 4% by 2050 and the yield of existing land is rapidly decreasing due to unbalanced fertilization, pollution, and soil deterioration.

79% of global phosphate reserves are located in countries with high sovereign risk and are controlled by state-owned corporations (Syria, Algeria, Morocco, Egypt, Jordan, and Israel) – high risk of interrupted supplies.

Phosphate is a finite resource, higher quality reserves and high-grade ores are rapidly depleting, and existing facilities have limited capacities to increase production or experience delays in ramping up production (Morocco).

High-grade phosphates are often diverted to domestic fertilizer production and often unavailable on the seaborne market.

GLOBAL TRENDS

phosphate-3

Phosphate supply security for net importers (mainly EU) has been recently undermined by the decreased quality of available phosphates, in particular, polluted by heavy metals such as cadmium and uranium. In 2019, the EU introduced new regulations limiting the cadmium content in rock phosphate, mainly supplied from Morocco.

New trends, such as supply lag and quality constraints, are emerging on the global phosphate market. No new large deposits have recently been discovered, and a combination of investment risks with increased exploration uncertainty and the costs of bringing mines into production lead to growing concerns in agricultural economies regarding the security of supply.

Producers, like China and the US, are becoming net importers of phosphates. In response to the growing phosphate demand, several producing countries have taken measures to restrict their exports to ensure sufficient availability of phosphates to meet their internal needs.

PHOSPHATES

WHY PHOSPHATE

phosphate-1

Phosphorus is one of the key elements that are essential for all living things, including bacteria, plants and animals. We get our phosphorus from the food we eat, which in turn comes from the phosphate fertilizers we apply to crops. Phosphate fertilizer is crucial for modern food production and is the defining factor in crop yields. Phosphate is a critical global resource, alongside water and energy.

Phosphorus is a key element for agricultural production and plays multiple roles in plant health, including photosynthesis and the construction of DNA and RNA as well as ATP (adenosine triphosphate), the energy-carrying molecule. Phosphate is a key component in bone health, comprising roughly 1% of average body weight. Lack of phosphorus in plants leads to a decrease in leaf and root size growth, and ultimately lower yields.

NO SUBSITUTE FOR PHOSPHATE

Today the majority of the world’s agricultural fields rely on fertilizers derived from non-organic minerals, including phosphate rock. Phosphate rock is a non-renewable resource and recent studies suggest that the world’s higher quality reserves are being rapidly depleted.

We see a unique opportunity to create value by developing abundant and high-quality marine phosphate deposits by deploying innovative solutions that both sustainable for the marine ecosystems and beneficial for the local communities. We believe that marine phosphates could provide the agricultural industry with a dependable, high quality, and low-cost supply of a critical and non-renewable mineral resource.

GROWING DEMAND

phosphate-4

The world population recently exceeded 7.8 billion and is currently increasing by ~75 million people per year at an average rate of 1.15%. By 2050, the world population is expected to grow by a further 34%. To feed a larger and richer urbanized population, world food production will need to increase by 70% in the coming decades.

A recent massive shift in the dietary preferences of the population in the developing countries towards higher protein consumption (meat and dairy products) requires significantly higher consumption of phosphate fertilizers –consumption of meat requires 7 times more grain for stockfeed as a vegetarian diet;

Food security is becoming increasingly dependent on a stable supply of fertilizer minerals and the most critical of them is phosphate. In 2013, China government declared phosphate a strategic mineral;

CONSTRAINED SUPPLY

phosphate-6

Arable land is projected to increase by only 4% by 2050 and the yield of existing land is rapidly decreasing due to unbalanced fertilization, pollution, and soil deterioration.

79% of global phosphate reserves are located in countries with high sovereign risk and are controlled by state-owned corporations (Syria, Algeria, Morocco, Egypt, Jordan, and Israel) – high risk of interrupted supplies.

Phosphate is a finite resource, higher quality reserves and high-grade ores are rapidly depleting, and existing facilities have limited capacities to increase production or experience delays in ramping up production (Morocco).

High-grade phosphates are often diverted to domestic fertilizer production and often unavailable on the seaborne market.

GLOBAL TRENDS

phosphate-3

Phosphate supply security for net importers (mainly EU) has been recently undermined by the decreased quality of available phosphates, in particular, polluted by heavy metals such as cadmium and uranium. In 2019, the EU introduced new regulations limiting the cadmium content in rock phosphate, mainly supplied from Morocco.

New trends, such as supply lag and quality constraints, are emerging on the global phosphate market. No new large deposits have recently been discovered, and a combination of investment risks with increased exploration uncertainty and the costs of bringing mines into production lead to growing concerns in agricultural economies regarding the security of supply.

Producers, like China and the US, are becoming net importers of phosphates. In response to the growing phosphate demand, several producing countries have taken measures to restrict their exports to ensure sufficient availability of phosphates to meet their internal needs.