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    First Phosphate G7 LOIs and offtakes: project finance lens for mine planners

    June 18, 2026|

    Reviewed by Joe Ashwell

    First Phosphate G7 LOIs and offtakes: project finance lens for mine planners

    First reported on MINING.com

    30 Second Briefing

    First Phosphate has secured letters of interest for up to C$275 million in guarantees from Denmark’s Export and Investment Fund and additional LOIs from Italy’s CDP, SIMEST and MAIRE to advance the Bégin-Lamarche mine and a Ballestra-technology phosphoric acid plant at Port Saguenay under the G7 Critical Minerals Resilience and Production Alliance. Bégin-Lamarche hosts 41.5 million indicated pit-constrained tonnes at 6.49% P2O5 and 214 million inferred tonnes at 6.01% P2O5 in igneous ore targeted for LFP battery-grade phosphoric acid. The company has also locked in offtake for at least 200,000 t/y of phosphate concentrate and 60,000 t/y of phosphoric acid, de-risking project financing and downstream integration.

    Technical Brief

    • Italian backing involves CDP, SIMEST and engineering group MAIRE specifically for the Port Saguenay phosphoric acid plant.
    • Ballestra process technology is earmarked for the Port Saguenay plant, indicating a wet-process phosphoric acid route.
    • Bégin-Lamarche resource is explicitly pit-constrained, implying open-pit mine planning with defined economic shells.
    • Ore is igneous rather than sedimentary, affecting beneficiation flowsheet, impurity management and acid plant design.
    • G7 positioning of the project is framed around secure, traceable battery-grade phosphate supply chains for allied markets.

    Our Take

    First Phosphate now appears in several of our critical minerals items alongside federal support via NRCan’s Global Partnerships Initiative, so the Danish and Italian export credit backing here strengthens a pattern of multi-jurisdictional public finance around Quebec phosphate and LFP value-chain build-out.

    Among recent iron ore and phosphate coverage, few projects combine upstream mining at Bégin-Lamarche with a phosphoric acid plant at Port Saguenay and explicit European offtake, which is likely to position this Quebec hub as a test case for trans-Atlantic, low-carbon battery-material supply chains.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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