Norge Mining recently announced an incredible discovery. They have found a massive deposit of phosphate in the south-western region of Norway. It could have a huge impact on fertiliser production and other key areas in the future. Let’s have a look at why it could be fantastic for all of Europe.
According to estimates, there is around 71bn tonnes of phosphate deposits in the world at the moment. Morocco has the largest stocks, with around 50bn tonnes. Then countries like China Egypt, and the US have reserves. Unfortunately, they are nowhere near as prolific in Europe. That is until now.
The discovery in Norway will completely change the market. The stocks are said to be at least 70bn tonnes. That is almost the same as the entire global reserve. If there is that much phosphate, it could meet global demand for the next 100 years. It would also mean Europe is less reliant on imports.
Phosphate is a very important resource because it has so many different uses. The most common is fertiliser to help plant growth. That makes it a crucial product, especially with global population growth increasing food demand.
Another vital use of phosphate is renewable energy. It is key for lithium iron phosphate (LFP) batteries. Demand for them is very high at the moment because they are important for electric vehicles, solar panels, and energy storage.
In addition, phosphate has many other noteworthy uses. This includes in cosmetics, food, dental care, cleaning, fire safety, construction, and much more.
The stocks in Norway are said to be around 4,500m below the surface. As a result, it will take a great deal of work to mine it. Norge Mining has done feasibility studies. This takes them a step closer to moving to production.
The Norwegian Government is also showing strong support. They are planning to expedite the processes to grant approval for the mining. Plus, they are doing more to help support the production of other vital raw materials in the country.
The future for fertiliser
At JS Hubbuck Ltd, we have a long history with fertilisers. We have been supplying products for decades in England and Scotland. As a result, we understand the market and the impacts on producers. With that in mind, we can say it would be fantastic to see production come to Europe. It could mean more stability in supplies. Plus, products would not need to travel as far if they come from Norway rather than Africa or further afield.
It will be interesting to see how the market changes in the future. The estimate is it could grow to be worth $176bn by 2040. This would be a massive increase from the $63.81bn value in 2021.
In the meantime, if you do need fertiliser, you can come to us. We would be happy to help you choose quality products and arrange delivery.