Market and product

Compiled by Bao Hien

After nearly eight decades of inactivity, an apatite deposit in the Otago region of New Zealand has resumed production, with the first shipments delivered to farms in September 2026. The restart comes as the country's agriculture sector grows increasingly concerned about its dependence on imported phosphate — a mineral whose global reserves are highly concentrated in just a handful of countries.

A 25-million-year-old deposit, forgotten for nearly 80 years

The apatite deposit at Clarendon Hill, in the Otago region, was previously mined in two periods in the early twentieth century (1902-1924 and 1943-1955) before being abandoned. According to recent geological surveys, the ore body has existed for roughly 25 million years and is estimated to hold millions of tonnes of phosphate rock. The portion of the reserve confirmed through drilling alone stands at 1.6 million tonnes at a phosphate grade of around 18%.

Restarting extraction after nearly eight decades is the result of fresh geological surveying and new investment, which allowed the mine's economic viability to be reassessed against today's significantly changed import price landscape.

Why domestic mining has become economically attractive

On cost, the landed price of mineral from the Clarendon deposit is estimated at around $240 per tonne — substantially cheaper than the roughly $460 per tonne for phosphate imported from Morocco, the country's main supply source. The extracted mineral goes through a two-stage crushing process after initial breaking, before reaching farmers.

Another technical advantage is that producing superphosphate from this domestic feedstock cuts its carbon footprint by up to 49% compared with using imported material, while also containing lower cadmium levels — a benefit for livestock health and for accessing export markets with strict limits on heavy-metal residues. The mine has also secured BioGro organic certification, opening access to premium product segments.

The geopolitics of an essential but scarce mineral

The deeper motivation behind restarting mining lies in the structure of the global phosphate supply chain. In July 2026 alone, New Zealand imported $26 million worth of phosphate, with 51% sourced from Morocco and 25% from Togo. Notably, around 85% of the world's known phosphate reserves are concentrated in just five countries — a degree of geographic concentration that leaves importing nations, particularly those with large agricultural export sectors like New Zealand, vulnerable to supply disruptions or export policy changes in the countries that hold the reserves.

The scarcity of alternative sources underscores this concentration: phosphate once mined in North Carolina (US) has stopped being exported, Nauru's reserves are exhausted, Togo's output is declining, while China has imposed export taxes that restrict trade flows. Russian phosphate, another potential alternative, is considered lower quality and located in a remote, logistically difficult-to-reach area.

Modest scale relative to demand, but a starting point

The Clarendon mine currently targets an annual output of around 100,000 tonnes, with land disturbance limited to roughly 3-5 hectares per year — a relatively contained physical footprint. However, compared with New Zealand's total annual phosphate imports (around 700,000 tonnes), Clarendon's output currently covers only a small share of domestic demand, not enough to fully replace imports.

Industry experts in the country's fertilizer sector describe New Zealand as "uniquely vulnerable" when it comes to access to nutrient raw materials — a particularly significant assessment for a country where agriculture plays a leading role in exports. Beyond Clarendon, the North Canterbury and Kaikoura regions are also assessed as holding additional phosphate potential (estimated at 10-20 million tonnes), while an offshore phosphate mining project at Chatham Rock remains contested and has not been developed.

Balancing economic benefit against water-quality risk

Despite the cost and supply-security benefits, freshwater experts also flag a familiar risk that comes with increased phosphate use in agriculture: excess phosphate runoff into rivers and streams can trigger algal blooms and eutrophication — phenomena that degrade water quality and threaten aquatic ecosystems. According to these experts, what matters is not whether domestic phosphate is mined and used, but ensuring that the amount of phosphate applied to soil matches what crops actually absorb, so that the surplus doesn't escape into surrounding waterways.