Metallurgy / Chemicals / Rubber & Plastics

According to Huacheng Import and Export Data Observation, on May 27th, Salt Lake Corporation released a notice on its research information activities, which showed that in 2023, the company will actively promote the "going out of potassium" strategy and promote the grafting of advantageous resources, capital, technology, and market. At the same time, we will increase market research, actively seek foreign resources to promote cooperation, and further consolidate the position of Salt Lake Corporation in resource development and potassium fertilizer production.

Li Shun, Secretary of the Board of Directors of Salt Lake Corporation, told reporters that the company bears the important responsibility of national "food security, resource security, and ecological security", effectively integrating national tasks, agricultural needs, and enterprise development. On the basis of ensuring the stability of existing potassium fertilizer production, the company actively promotes the "going out of potassium" strategy, realizes the dual wheel drive of "two resources, two markets", and expands, strengthens, and optimizes the potassium industry, Huacheng Import and Export Data Observation Report.

In fact, not only Salt Lake Corporation, but also many leading potassium fertilizer companies have been continuously increasing their overseas potassium fertilizer layout in recent years.

According to Huacheng Import and Export Data Observation, public information shows that in September 2021, Asia Potassium International completed its first 1 million ton potassium fertilizer project in 17 months, and successfully achieved production in March 2022, becoming the first million ton potassium fertilizer project of a Chinese enterprise overseas. In January 2023, the company achieved the production of its second 1 million ton project in just 10 months, increasing its potassium fertilizer production capacity to 2 million tons, becoming the largest Chinese enterprise in Southeast Asia in terms of potassium fertilizer production scale. The company's third 1 million ton potassium fertilizer project is expected to be completed and put into operation by the end of 2023, and aims to achieve a production capacity of 5 million tons by 2025.

In addition, according to Huacheng Import and Export Data Observation, on February 17 of this year, two wholly-owned subsidiaries of Zangge Mining, Chengdu Chuanliao Juyuan Industrial Co., Ltd., Zangge Mining International Pte. Ltd., and two local partners in Laos signed the "Potash Exploration Agreement" with the Lao government in Bayo County, Setani County, Vientiane. According to the agreement, the exploration and franchise areas of the company in Setani County and Bayo County, Vientiane City, Laos are 198.97 square kilometers and 199.29 square kilometers, respectively. The discovered mineral resources include carnallite ore, potassium salt ore, etc. It is estimated that the total amount of potassium chloride resources is about 600 million tons, and the initial planned production capacity of the first phase is 2 million tons/year.

Jin Lianchuang Fertilizer Analyst Dai Li told reporters that Laos is rich in mineral resources and has good resource endowment conditions, making it suitable for large-scale development of potassium salt projects; The burial depth of the mineral deposit is shallow, the mining cost is low, and the local labor force is low; Meanwhile, Laos is close to the Southeast Asian market, which can help solve the problem of capacity consumption.

Potassium fertilizer enterprises actively "go global", mainly because nearly half of domestic potassium fertilizer resources rely on imports and have a high degree of dependence on foreign countries.

China is the world's largest demand country for potassium fertilizer, but its domestic potassium ore reserves are relatively low and its sustainable supply capacity is insufficient, especially in the absence of soluble potassium resources. "Dai Li said, therefore, it is urgent for the potassium fertilizer industry to find potassium overseas. Huacheng Import and Export Data Observation Report.