The Canadian government has updated its critical minerals list for the first time since 2021, adding phosphorus, high-purity iron, and metallic silicon. This update increases the total number of critical minerals to 34. First Phosphate Corp CEO John Passalacqua discussed the advantages of phosphorus being added to this list, highlighting the significant financial and developmental benefits for the company.
According to Passalacqua, the inclusion of phosphorus on the critical minerals list makes First Phosphate eligible for critical minerals flow-through shares, which aid flow-through investors. Additionally, various funding programs at both federal and provincial levels are now accessible exclusively to critical minerals. This new designation is anticipated to boost investor confidence and unlock more funding opportunities on an international scale. Countries such as the United States are encouraged to follow Canada's lead by including phosphorus in their critical minerals lists.
Canada had previously produced sedimentary phosphate for fertilizers but ceased production a decade ago. First Phosphate now aims to produce high-purity igneous phosphate in northern Quebec, which is suitable for high-grade phosphoric acid used in batteries. Passalacqua pointed out that being on the critical minerals list significantly enhances the company's eligibility for grants and funding, which will facilitate its project development.
Beyond financial perks, this new designation offers First Phosphate a competitive market edge, aligning with global trends in mineral production and usage. The company's strategic focus on producing high-purity phosphate positions it well to meet the growing demand for critical minerals, particularly in the battery sector.
With the critical minerals list updated, First Phosphate is set to leverage the enhanced support and funding opportunities. The company intends to accelerate its project development efforts, concentrating on producing high-quality phosphate to cater to the increasing market needs.
