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Released December 27, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--Rising food production and a resulting increase in demand for fertilizers have led to a surge in the demand for phosphate rock mining. Phosphate rock is a critical raw material used primarily in producing phosphorus-containing fertilizers, the second-most essential plant nutrient after nitrogen. Beyond fertilizers, its applications in industrial processes, animal feed and emerging sectors like lithium-iron-phosphate batteries have further underscored its growing significance. As a result, phosphate rock mining is attracting significant investments from various stakeholders.
Although the global consumption for phosphate rock is expected to touch 50 million tons by 2027, according to the United States Geological Survey, the supply side remains significantly constrained. This is due to limited reserves located mainly in countries like China, U.S. and Morocco. While China has imposed government quotas and export restrictions to make fertilizers more available and affordable domestically, countries like Morocco face significant challenges such as falling international fertilizer prices and extreme weather events.
Additionally, phosphate rock mining faces significant environmental impacts, such as the destruction of habitats, groundwater contamination, and the production of toxic byproducts like phosphogypsum. Advancements in phosphorus recycling techniques within the agro-industry are likely to reduce demand for virgin phosphate rock, further challenging the industry's conventional supply chain.
Industrial Info is tracking 146 active capital-spending projects worldwide worth more US$17 billion aimed at phosphate rock mining. About 69% of this spending is focused on grassroot developments, 17% toward plant expansion, and 10% toward unit additions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of projects.
Most of the spending is concentrated in Asia, Africa and North America, with investments worth more than US$8 billion, US$3 billion and US$2 billion, respectively. By country, China is attracting the highest spending (more than US$6 billion), accounting for 38% of the market share. This could be attributed to the country's growing population, vast agricultural sector, government's efforts towards promoting fertilizer use, and its position as one of the leading exporters of phosphatic fertilizers.
The U.S. and Algeria are also driving significant spending of more than US$1 billion each. Other countries with potential investments are Canada, Finland, Brazil, Jordan and Norway.
With an aggregate spending of more than US$3 billion, Asmidal (Annaba, Algeria), Guizhou Kailin Group Company Limited (Guiyang, China) and Finnish Minerals Group (Helsinki, Finland) are the leading players in the market. As the leading investor, Asmidal is advancing its Bled-El Hedba project in Algeria focused on developing an open-pit mine with an initial production capacity of 6 million tonnes per year (MT/yr) of phosphate rock, with plans to expand output to 10 mt/yr. Click here to read the related project reports.
Overall, 67% of the investment is in the planning phase, 19% is being engineered, and 14% is under construction. While most of the projects are anticipated to reach completion by 2029, the remaining will reach fruition by 2038.
Notably, the majority of the spending faces a kickoff slippage of more than two years. This not only adversely affects project costs and timelines, but also undermines stakeholder confidence.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Although the global consumption for phosphate rock is expected to touch 50 million tons by 2027, according to the United States Geological Survey, the supply side remains significantly constrained. This is due to limited reserves located mainly in countries like China, U.S. and Morocco. While China has imposed government quotas and export restrictions to make fertilizers more available and affordable domestically, countries like Morocco face significant challenges such as falling international fertilizer prices and extreme weather events.
Additionally, phosphate rock mining faces significant environmental impacts, such as the destruction of habitats, groundwater contamination, and the production of toxic byproducts like phosphogypsum. Advancements in phosphorus recycling techniques within the agro-industry are likely to reduce demand for virgin phosphate rock, further challenging the industry's conventional supply chain.
Industrial Info is tracking 146 active capital-spending projects worldwide worth more US$17 billion aimed at phosphate rock mining. About 69% of this spending is focused on grassroot developments, 17% toward plant expansion, and 10% toward unit additions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of projects.
Most of the spending is concentrated in Asia, Africa and North America, with investments worth more than US$8 billion, US$3 billion and US$2 billion, respectively. By country, China is attracting the highest spending (more than US$6 billion), accounting for 38% of the market share. This could be attributed to the country's growing population, vast agricultural sector, government's efforts towards promoting fertilizer use, and its position as one of the leading exporters of phosphatic fertilizers.
The U.S. and Algeria are also driving significant spending of more than US$1 billion each. Other countries with potential investments are Canada, Finland, Brazil, Jordan and Norway.
With an aggregate spending of more than US$3 billion, Asmidal (Annaba, Algeria), Guizhou Kailin Group Company Limited (Guiyang, China) and Finnish Minerals Group (Helsinki, Finland) are the leading players in the market. As the leading investor, Asmidal is advancing its Bled-El Hedba project in Algeria focused on developing an open-pit mine with an initial production capacity of 6 million tonnes per year (MT/yr) of phosphate rock, with plans to expand output to 10 mt/yr. Click here to read the related project reports.
Overall, 67% of the investment is in the planning phase, 19% is being engineered, and 14% is under construction. While most of the projects are anticipated to reach completion by 2029, the remaining will reach fruition by 2038.
Notably, the majority of the spending faces a kickoff slippage of more than two years. This not only adversely affects project costs and timelines, but also undermines stakeholder confidence.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
