The EU has just finalized new guidelines allowing for green labels to be applied to phosphate fertilizer products with exceptionally low levels of cadmium (below 20 mg of cadmium per kg of P2O5 nutrient) as part of EU Fertilisers Regulation (EU) 1009/2019. Starting on July 16, 2022, the sale of phosphate-based fertilizers containing more than 60 mg of cadmium per kg of P2O5 will be barred throughout the EU. In July 2026 it is believed that the European Commission will consider further tightening restrictions on cadmium.
Click here to read an article about the EU's new green phosphate rules that were finalized earlier this month! Arianne Phosphate (TSXV: DAN)'s CEO is quoted in the article!
This is a huge development for Arianne Phosphate (TSXV: DAN) because its 100% owned Lac à Paul project in Quebec is the largest undeveloped Green Phosphate Project located within a low risk mining jurisdiction! There is going to be tremendous demand from the EU for the Green Igneous Phosphate Rock produced from DAN's Lac à Paul project because fertilizer companies that import DAN's Green Igneous Phosphate Rock for use in their product will be able to add a green label to their product and beginning in mid-2022 many of the EU's current sources of Phosphate Rock will be banned!
The EU originally wanted to bar phosphate-based fertilizers containing more than 40 mg of cadmium per kg of P2O5 with a further reduction to 20 mg of cadmium per kg of P2O5 a few years later, but the world's largest producer of Phosphate Rock the Kingdom of Morocco strongly opposed the limit because cancer causing cadmium occurs naturally with mining rock phosphate in Morocco, whereas Russia’s phosphates are naturally lower in cadmium.
The EU doesn't want to be dependent on Russia for all of its Phosphate Rock! They want DAN's Lac à Paul project to come online before they implement tighter restrictions! Knowing how strong the demand will be from the EU for DAN's Green Phosphate Rock, the Quebec government has invested big into DAN for the last three straight years! In addition, the Quebec Government is pushing forward with its plans to build a new $1.2 billion North Shore Marine Terminal to allow DAN to export its Green Phosphate Rock to the EU! Click here to learn about the terminal!
With Volkswagen just announcing this month that it will be using Phosphate in its EV batteries, they too will need to import Green Phosphate Rock and DAN will be one of their only options outside of Russia! Click here to read about Volkswagen!
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