Phosphating companies launched a "ring mine" fever

"The acquisition of mine-related companies is to improve the phosphorus chemical industry chain and prepare for the sustainable development of the company." On December 21, the relevant person of Hubei Yihua Chemical Co., Ltd. told reporters. In the past six months, the reporter learned from interviews with listed chemical companies that the scarcity of phosphorus resources is boosting the “circle mine” boom of listed companies.

The listed companies represented by Hubei Yihua are using their financing advantages to accelerate the establishment of their industrial chains. On December 13, the company issued an announcement that its controlling subsidiary, Hubei Yihua Jiangjiadun Mining Co., Ltd. has obtained a legal mining license with an area of ​​1.14 square kilometers and a production scale of 300,000 tons per year. According to the detailed geological survey approved by the Ministry of Land and Resources of Hubei Province, the estimated reserves of Jiangjiadun Phosphorus ore are 161 million tons, and another potential mineral resource is 27.07 million tons with an average thickness of 6.31 meters.

Just a few days before the publication of the announcement, the company was openly tendered at the Maping Mine, Yangliu Phosphorous Mining Area, Yuan'an County, Hubei Province, which is the largest phosphate mine in the Asian single mining area. It finally went to Hubei Yi’an Union Mining Co., Ltd., and its major shareholder is Hubei. Yihua Group. The proven reserves of the mine amounted to 547 million tons and the potential economic value exceeded 100 billion yuan. “The phosphate companies under the replenishment are mainly to ensure the supply of phosphate ore and to resist the price fluctuations in the market and realize an integrated business model.” said Jiang Yuanhua, chairman of Hubei Yihua.

The Hing Fat Group in Hubei, which is located in the same place, is also step by step and implements cross-provincial cooperation. In November, the group signed a cooperation framework agreement with Yifu (Group) Co., Ltd. The two sides agreed to cooperate in the deep processing of phosphorus chemical downstream and comprehensive utilization of resources. Guizhou Fufu Group is a state-owned large-scale phosphorous chemical enterprise integrating the collection and selection of phosphate ore, phosphate compound fertilizer, phosphorous coal chemical industry, fluorine iodine chemical production and scientific research. The phosphate rock resources are abundant, and the comprehensive utilization of resources technology is before the industry. Mao. This cooperation can give full play to their respective advantages, achieve strong alliances and create favorable conditions for both parties to jointly expand and strengthen the phosphorus chemical industry.

The frequent mergers and acquisitions of phosphate companies in listed companies has a close relationship with the state's industrial policies. In the “Twelve Five-year Development Plan for Chemical Industry Mining” promulgated by the China Chemical Mining Association, the status of phosphate mineral resources has been raised to an unprecedented level, requiring the establishment of a reserve mechanism for phosphate mineral resources in the next five years and improving the access threshold for phosphate mining. The "Planning" proposes that in the future, the integration of resources will be based on the optimization and upgrading of industrial structure, and will gradually be concentrated on large state-owned enterprise groups and advantageous enterprises. Enterprises without phosphate rock resources and advantages will be eliminated or merged. Shandong Jinzhengda Ecological Engineering Co., Ltd.'s large-scale purchase of phosphate resources will undoubtedly follow this trend.

“One of the purposes of investing in and constructing the Guizhou project is to make full use of the abundant phosphate mineral resources in Guizhou, accelerate the integration of the fertilizer industry chain, reduce the external dependence and transportation costs of raw materials, and thus increase the cost advantage of the products,” said Kim Jung-Da. In October, the company announced that it intends to purchase a portion of equity in China Cheng Chemical, intending to obtain the phosphorus chemical resources and technology held by China Cheng Chemicals, to carry out deep processing of phosphorus resources, and to realize the extension of the industrial chain to the upstream. It is understood that the company had previously signed a cooperation agreement with the Pan County of Guizhou Province for the Phosphorus Resources Recycling Economy Industrial Park project. They will spend 5.96 billion yuan to build the advantages of the entire industry chain.

According to the data released by the US Geological Survey, China's phosphate reserves are ranked second in the world. At present, China has only 21.11 billion tons of reserves of preserved phosphate rock resources, with an average grade of 17%. Of these, only about half of the rich minerals with a grade of more than 30% are rich. Due to the low ore grade and backward technology, the average recovery rate of domestic phosphate rock is only about 60%, which is lower than the level of more than 95% in the United States, North Africa and other countries and regions, which means that the domestic annual nearly 70 million tons (30% The actual output corresponding to the production of more than 100 million tons. Based on this calculation, regardless of newly discovered mineral deposits, domestic resource utilization can only support two or three decades.

The good news is that the reporter learned from Xingfa Group that in addition to vigorously promoting the acquisition of phosphate rock resources, Xingfa Group has also increased the comprehensive utilization of low-grade phosphate rock, which is integrated in the low-grade phosphate rock. Use has been recognized by the government. At the same time, Hubei Yihua Group's beneficiation technology has been a breakthrough, and has formed a full industrial chain model of integration of mining and processing. Yihua Group can make 100% use of the mine, and Yichang's phosphate rock resources have been further extended. It is reasonable to believe that with the continuous improvement of the comprehensive utilization level of phosphate resources in these listed companies and the formation of a full industrial chain model, the industrial structure will be optimized and upgraded, creating favorable conditions for expanding and strengthening the phosphorus chemical industry.

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