Norway has made a groundbreaking discovery of a vast phosphate deposit on its territory, estimated to be at least 70 billion tonnes, slightly below the 71 billion tonnes of confirmed global reserves.
The announcement was welcomed by the European Commission, whose spokesperson expressed enthusiasm that the discovery was in line with the Commission’s proposal on the regulation of critical raw materials. The EU sees this as an opportunity to reduce dependence on foreign suppliers such as Morocco, the US and China for essential resources such as fertilisers, solar panels, lithium-iron-phosphate batteries, semiconductors and electronic chips.
PHOTO/FILE – Flags of the European Union
Norway already has significant offshore oil and gas reserves, shared with the UK.
Currently, the world’s largest phosphate reserves, approximately 50 billion tonnes, are located in Morocco. Other important reserves are located in China, Egypt and Algeria, according to US estimates. The Norwegi deposit is located at a depth of 4,500 metres below the earth’s surface.
Japan to import phosphate from Morocco
In response to the Norwegian discovery, the Moroccan Phosphate Office (OCP) has launched a major Dh130 billion investment programme for the period 2023-2027. This programme focuses on increasing fertiliser and rock production capacities and achieving carbon neutrality by 2040.
In addition, major investments are planned in the Sahara region to improve the production of green ammonia.
REUTERS/YOUSSEF BOUDLAL – Phosphate mine at the Boucraa factory of the Moroccan National Phosphate Company (OCP) located in the southern provinces of Morocco.
Norge Mining, the company responsible for the discovery in Norway, has confirmed the substantial estimates of phosphate reserves. The company located the underground deposit in the southwest region of Norway.
The company’s CEO, Michael Wurmser, described the discovery as significant, surpassingal other known sources in Europe. As reported by Hespress, the company believes the deposit is enough to meet the world’s demand for electric vehicle batteries, solar panels and fertiliser for the next century.
Morocco is the new potential player in the face of global fertiliser shortages
The Norwegian government has shown strong support for the project and has pledged to expedite the approval process for critical raw materials. According to the company, economic feasibility studies have been completed, bringing the project closer to the mining production phase.
PHOTO/FILE – Phosphate fertilizer
Prior to the Norwegian discovery, Morocco had the largest phosphorite reserves in the world, with approximately 50 billion tonnes. As reported by Yabiladi, Morocco produced 40 million metric tons of fertiliser in 2022, supplying more than 70% of the world’s phosphate deposits.
China, on the other hand, has the third largest phosphate reserves in the world, with 1.9 ilion metric tons. The Chinese government has imposed limitations on phosphate exports to stabilise domestic fertiliser prices using its own supply.
PHOTO/PIXABAY – Fertilizers and the agricultural sector
The phosphate fertiliser market was worth $63.81bn in 2021 and is projected to rise at a compound annual growth rate (CAGR) of 5.7% to reach $176bn by 2040, indicating great potential for the industry.
The discovery of the huge phosphate deposit in Norway has the potential to reshape the global market for fertilisers, solar panels and electric car batteries. This not only positions Norway as a key player in the global supply chain, but also offers an opportunity to reduce dependence on foreign suppliers, fostering greater self-sufficiency and security in critical raw materials.
Marta Dorgambide