Arianne Phosphate, Saguenay, Quebec, the development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, announced on April 15 that it has reached an agreement with the Port of Saguenay for the future site of a maritime phosphate loading facility on the north shore of the Saguenay River.
Arianne said the agreement will allow it and the Port to finalize details regarding the costs, construction, and operation of the facility, from which Arianne will be shipping its phosphate concentrate globally. The final agreement will cover the use of the facility for an initial period of 30 years, thereafter renewable twice for periods of 10 years.
“Like any globally traded commodity, transportation and logistics is a key element of success,” said Brian Ostroff, Arianne CEO. “Once loaded on a ship, our phosphate can be sent anywhere, and given the high purity of our concentrate, we will enjoy tremendous economies of scale. This agreement comes at a time when global demand for phosphate continues to rise driven by a greatly improved agricultural macro and growth in specialty applications such as Lithium Iron Phosphate (LFP) batteries for cars.”
The Port of Saguenay currently operates its facilities on the south shore of the Saguenay River and is a main commercial hub in the region. As part of the agreement, Arianne said it will sell a parcel of land on the north shore to the Port for construction of the loading facility.
“With a 50-year agreement, we will be in a strong position to supply our global customers from our long life-of-mine Lac à Paul project,” said Jean-Sébastien David, Arianne Chief Operating Officer.