Agnico Eagle’s acquisition in the Canadian phosphate space
By Joshua Mayfield
Phosphate production in Canada
The reemergence of phosphate mining in Canada is nothing new and there are some advantageous political dynamics at play for Canadian phosphate projects. The Canadian government is keen to establish Ontario as a force in the phosphate mining sector and Ontario’s Premier Doug Ford set out to create special economic zones (SEZs) that would suspend provincial and municipal laws for certain projects that will be important growth sectors for Canada’s mining industry in the future, such as phosphate for fertilizer and lithium-iron phosphate (LFP) battery production.
Global phosphate trade tensions
In 2025, phosphate was added to the USGS critical minerals list. The objective of this U.S. critical mineral push is to decrease dependence on imports for phosphate products. Morocco’s phosphate exports were also hit with countervailing duties (CVDs) by the U.S. government. The case at the United States International Trade Court (USITC) is ongoing, even as the Mosaic Company announced its withdrawal from the case. Unfortunately for OCP North America, the duty rate on Morocco’s phosphate imports into the U.S. was set at 16.81 per cent.
This CVDs case revolves around global phosphate market trends and foreign government subsidies; however, U.S. and Canadian farmers should also be concerned about how LFP battery demand will disrupt the supply and demand for phosphate fertilizers. For example, China’s export restrictions on phosphate fertilizers disrupted the supply chain which led to higher prices. It’s obvious that there had never been any expectations for China to exit this crucial phosphate market. In addition, the world is scrambling for phosphate fertilizer supplies due to Strait of Hormuz shipping disruptions.
Due to high fertilizer prices, several junior phosphate companies have emerged from the shadows, and not all of them are even trying to break into the phosphate fertilizer market. Volatile phosphate prices in the USD $800-$900 per ton range are a new reality in the MAP and DAP fertilizer markets. Higher raw material input costs from ammonia and sulphur found their way into higher prices for phosphate production. The Phosphate Producer Price Index (PPI) has risen over 100 points since bottoming out in July 2023.
Agnico: Going where eagles dare?
In recent years, new phosphate projects are getting a lot of attention in the capital markets. Even the battery-intensive companies with their LFP battery dreams in sight are getting noticed for the high phosphate fertilizer prices. In a very intriguing transaction, on May 25, 2026, it was announced that Agnico Eagle, via its subsidiary Avenir Minerals Ltd, was acquiring Fox River Resources (CSE:FOX) by way of a statutory plan of arrangement under the Canada Business Corporations Act.
The deal was unanimously approved by the directors of Fox. Fox River holds a 100 per cent interest in the Martison Phosphate Project near Hearst, Ont. This had been planned as a vertically integrated operation, to exploit a high-grade, large-scale igneous phosphate deposit “capable of providing a secure domestic supply of phosphate fertilizers, as well as PPA for the LFP battery industry”. The project’s Anomaly A deposit underpinned a PEA with an effective date of April 21, 2022. Shareholders of Fox River will receive CAD$1.10 per share, payable in cash, for an aggregate purchase price of approximately CAD$94.3 million on a fully-diluted basis.
Conclusion: A North American phosphate supply chain matters
This is a prescient move by a mining major to acquire a junior phosphate company in Canada. Current policy actions from the U.S. and Canda are positive for the phosphate mining sector. However, future policies will require more than just boosting domestic production in the U.S and Canada; there must be a complete rethink on the entire phosphate supply chain in North America because Morocco, China, and Algeria have some of the world’s largest reserves of phosphate rock.
At the same time, domestic phosphate production should be reserved for fertilizer projects and national food security programs. The U.S. shouldn’t even consider investments into LFP battery plants since Canada can provide LFP batteries with its extensive igneous rock reserves. It’s clear that phosphate fertilizer prices are not the only cause for phosphate becoming a critical mineral in the U.S. and Canada. The North American LFP battery supply chain matters for the entire critical minerals landscape.
—
