First Phosphate Targets 2030 Quebec Mine Production With 2027 Feasibility Study

Key Points

• First Phosphate is targeting completion of a feasibility study in the first quarter of 2027 and initial production by 2030 for its northern Quebec igneous phosphate project, subject to permitting and a final investment decision.
• The company says its high-purity phosphate contains about 40% P₂O₅ and no radioactive material, potentially reducing processing and waste-disposal requirements compared with sedimentary phosphate.
• The project’s estimated capital cost is approximately $500 million, with 75% reportedly covered by secured credit supported by Swiss and Danish partners; existing rail, road, port and low-cost hydroelectric infrastructure may also reduce development needs.

First Phosphate NASDAQ: PHOS is advancing a proposed igneous phosphate mining project in northern Quebec, with a feasibility study targeted for the first quarter of 2027 and initial production envisioned by 2030, President Armand MacKenzie said during a company presentation.

MacKenzie, who said he has 25 years of mining-industry experience and is also a lawyer, described the company as a mining investment focused on supplying high-purity phosphate for downstream applications. He cited potential uses in robotics, electronics, energy storage systems and electric vehicles, while noting that phosphate also has a range of other industrial and consumer applications.

Project location and infrastructure

The project is located in Quebec and is being developed alongside existing transportation and power infrastructure, according to MacKenzie. He said access to rail, roads, a deep-sea port and Quebec's Hydro-Québec power grid could reduce the amount of infrastructure that would otherwise need to be built for the mine.

MacKenzie said Hydro-Québec’s industrial electricity tariff is approximately $0.03 per kilowatt-hour, which he characterized as low. He also emphasized the importance of logistics, power availability and social acceptance in developing a mining project.

The company is in the feasibility-study and permitting stages and is seeking to move into downstream operations, MacKenzie said.

Igneous phosphate focus

MacKenzie said First Phosphate’s deposit contains igneous phosphate, which he contrasted with sedimentary phosphate produced in regions including Florida and Morocco. He said sedimentary phosphate can contain radioactive materials and can create more difficult and expensive waste-disposal requirements during processing.

In contrast, he said First Phosphate’s material is high purity and does not contain radioactive material. The company’s phosphate concentrate has approximately 40% phosphorus pentoxide, or P2O5, according to MacKenzie. He said this quality can reduce processing requirements for customers that convert phosphate concentrate into products such as phosphoric acid.

MacKenzie also said the company’s processing byproducts, including gypsum, are not contaminated in the way sedimentary phosphate byproducts may be. He said this could enable alternative uses for the gypsum, including wallboard-related applications.

When asked to quantify the company’s cost advantage or pricing premium over sedimentary phosphate, MacKenzie declined to provide figures, citing confidentiality provisions in the company’s offtake agreements. He said the agreements’ pricing formulas reflect the lower processing needs of the material.

Offtake agreements and funding

First Phosphate has signed offtake agreements with European partners, MacKenzie said. He said European customers are seeking to secure supply chains for high-quality phosphate, particularly amid geopolitical concerns surrounding supply from Russia and other regions.

The company’s preliminary economic assessment estimates capital expenditures of about $500 million, according to MacKenzie. He said 75% of that amount is covered by secured credit supported by Swiss and Danish partners, including guaranteed letters related to the concentrator and mobile equipment required for mine construction.

MacKenzie said the company has sufficient funding to complete the work required before a final investment decision and is not actively seeking additional capital, though additional funding would be welcome.

Development timeline

First Phosphate’s stated development schedule includes:

• Feasibility study completion in the first quarter of 2027
• Environmental consultation work during 2027
• Final permits and authorizations from the Quebec government targeted for the first quarter of 2028
• Final investment decision, procurement and mine construction following permitting
• Initial production targeted by 2030

MacKenzie cautioned that permitting timing remains subject to government processes. He said the deposit contains approximately 205 million metric tons of measured and indicated resources, which he said could support mine operations for more than 20 years.

About First Phosphate (NASDAQ:PHOS)

First Phosphate Corp. is a Canadian mineral development company focused on advancing phosphate resources in Quebec, Canada. The company is working to develop an integrated supply chain for lithium iron phosphate (LFP) battery materials, which are used in certain lithium-ion batteries for electric vehicles, energy storage systems and other applications.

First Phosphate's activities include the exploration and development of phosphate properties in the Saguenay–Lac-Saint-Jean region of Quebec, including its Bégin-Lamarche project.

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