Large-scale fertilizer companies accelerate the occupation of phosphorus resources

To cope with the gradual increase of the access policy for phosphate ore

In Hubei Province, a province with a large phosphorus resource, the "Opinions on Further Strengthening the Management of Development and Utilization of Phosphorus High-Potassium Iron Mines" was proposed. After the proposal to integrate and limit the use of local phosphate rock, the fertilizer companies in the province began to accelerate the "preemption" of upstream phosphorus resources. The industry speculated that Guizhou, Yunnan, Sichuan and other major phosphate producing areas will also introduce a provincial-level phosphate rock mining policy similar to Hubei. In this situation, local fertilizer companies started to take action.

On August 18, Hubei Yihua Chemical Industry Co., Ltd. announced that its subsidiary, Hubei Yihua Fertilizer Industry, plans to invest 54 million yuan to increase the capital of Sichuan Huarui Mining. It is reported that Huarui Mining just obtained the prospecting right of the phosphate rock on August 14th, and its primary proven reserves of phosphorus rock were 123 million tons.

On the same day that Yihua issued the announcement, Shandong Jinzhengda invested RMB 500 million to establish Guizhou Jinzhengda. A few days later, Shandong Jin Zhengda issued an announcement saying that it had signed a cooperation agreement with the Pan’an County Government of Guizhou Province on the “Phosphorus Resources Cycling Economy Industrial Park Project”, and plans to invest 5.96 billion yuan in the construction of a phosphorus resource recycling economy industrial park project. Phosphate compound fertilizers and related phosphorus chemical industries are planned to be completed within five years. The initial planning for the project will be 600,000 tons/year of monoammonium phosphate, 600,000 tons/year of diammonium phosphate, 400,000 tons/year of calcium dihydrogen phosphate, 600,000 tons/year of nitro compound fertilizer, and 200,000 tons/year of phosphoric acid Dihydrogen potassium and other phosphorus chemical products.

The eye-catching companies have long been hands-on. In 2009, Shandong Shikefeng Chemical Co., Ltd. invested 1.36 billion yuan to build 1 million tons of phosphate compound fertilizer project in Leibo County, Sichuan Province. The local government designated 30 square kilometers of phosphate rock to be used by the project. Shi Kefeng also became a minority in China. Several of the fertilizer companies that own their own phosphate mines.

According to industry sources, the reason why these fertilizer companies have such moves is mainly because it is determined that the domestic access policy for phosphate deposits will gradually tighten. The introduction of the policy of restricting mining in Hubei has strengthened the judgment of these companies and forced them to act as early as possible.

It is understood that China's phosphate rock reserves ranks second in the world, but reserves are rich but not rich. The average grade is only 17%, mainly distributed in Yunnan, Guizhou, Sichuan, Hubei and other provinces. China has proved that the basic reserve of phosphorite available for technical and economic use is only about 4 billion tons, accounting for about 20% of China's total phosphate resources. Most of the remaining phosphate resources are difficult to extract and use.