Likewise, Jean-Sebastien David, Arianne's COO, commented, "[c]ertainly, this is a big project and it will require the support of all those involved. By having the government there, I think it shows the commitment of the province to doing all they can do to help see Lac à Paul be developed. Their investment will enable our team to continue to focus their efforts and energy on the ultimate success of our project. This investment also adds to the string of recent favorable corporate events over the last few months: positive drill results, favorable cost reductions and strong management additions."Lac à Paul is set to be the most significant development in Quebec. As Arianne reported in its feasibility study early this year, it will generate $12.5 billion in economic benefits throughout its 25 years of operations. Arianne is planning to reach production by 2017 to 2018. Arianne's production timeline puts the company in a better position to take advantage of an improved market. As it stands, analysts are currently calling for declining prices and crops, which could reduce growth in the fertilizer sector for the next year. Coincidentally, Arianne's announcement was released alongside news out of top phosphate-producing country Morocco, which announced a drop in profits for the first half of the year. Prices for phosphate rock have slumped so far in 2014, and are currently sitting at $110 per tonne. In contrast, 2013 saw phosphate prices around $145 per tonne and in 2012 they were at $185. According to Reuters, Morocco's Office Cherifien de Phosphate (OCP) has exclusive access to the largest global reserves of phosphate. With North America projected to double its required phosphate imports to 8 million tonnes in the next five years, domestic supply could offer some shelter from the Middle Eastern and Northern African suppliers, which control the bulk of the phosphate market.
Arianne issued a trade halt on Monday and did not resume trade following the news.Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned. Quebec Government Supports Arianne Phosphate, Invests $2 Million from Potash Investing News