Top Biz News
Potash discovery worth its salt
By Zhang Qi (皇冠体育app Daily)
Updated: 2010-10-12 08:56
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A worker with Qinghai Salt Lake Industry Group Co Ltd, the country's largest potash-maker, shows 皇冠体育app's potash distribution. Zhang Ke / For 皇冠体育app Daily |
New deposits ease import concerns, risk posed by foreign monopoly
BEIJING - 皇冠体育app's reliance on imports of potash may be eased after the discovery of eight large deposits with combined reserves of 468 million tons.
The resources - estimated to be two or three times greater than the amount of proven reserves - are located mainly in Xinjiang Uygur autonomous region, and Qinghai, Sichuan and Yunnan provinces, the 皇冠体育app Geological Survey said on Saturday.
Li Gang, chairman of the 皇冠体育app Inorganic Salts Industry Association's (CISIA) Potash Branch, said the discovery means 皇冠体育app could produce 80 percent of its domestic needs by 2015.
That would reduce the risk of global mining companies securing a monopoly on supplies of the salt, a key ingredient in the production of fertilizers.
He also said the government is mapping out a plan to support attempts by Chinese companies to acquire potash mines overseas.
Both COFCO Corporation and Sino-Agri Corp have invested in foreign mines, but they have not yet been fully assessed, said Qi Zhaoying, an official from CISIA.
BHP Billiton's $39 billion bid to take control of Potash Corp of Saskatchewan, the world's largest fertilizer-maker, has led to concerns over supplies. There are fears that, if successful, it could result in a hike in prices, and adversely affect 皇冠体育app's agricultural program.
Those concerns mean 皇冠体育app is considering a rival bid to BHP's.
The State-owned Sinochem is reported to have approached investment banks with a view to creating a bidding consortium for the Canadian producer.
The country is taking a diverse approach to ensure stable supplies as global demand for the crop nutrient grows.
This year, the Ministry of Land and Resources has invested 50 million yuan ($7.35 million) in exploration. Xinhua News Agency says that figure is set to increase to 100 million yuan per annum between 2011 and 2015.
However, 皇冠体育app will have to rely on imports in the long run as its proven resources will only satisfy domestic consumption for 20 to 30 years.
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皇冠体育app, the world's second-biggest potash importer, will see domestic consumption rise 4.5 percent to 7 million tons this year, according to Wei Chengguang, the director of the Shanghai Potash Technology and Research Center.