China Encourages Low Grade Phosphorus Ore Exploitation

CCM’s Phosphorus Industry China Monthly Report indicates that China encourages low grade phosphorus ore exploitation.

China will strengthen phosphorus ore resource exploitation in the coming years and the low grade phosphorus ore exploitation is encouraged.

According to the Development Plan of Chemical Mining Industry (the Plan), released by China Petroleum and Chemical Industry Federation (CPCIF) in June 2011, China will focus on the exploitation of phosphorus, sulfur and potassium resources in the 12th Five-Year Plan (2011-2015).

The Plan indicates that China aims to realize phosphorus ore self-sufficiency by achieving annual output of 75 million tonnes by 2015. To achieve the target, CPCIF suggests rising the utilization rate of phosphorus resource by means of levying lower resource tax to encourage the exploitation of low grade phosphorus ore and raising the entry criteria of phosphorus ore exploitation on scale. Meanwhile, it suggests Chinese government perfecting phosphorus resource reserving mechanism to protect phosphorus resource.

In H1 2011, China totally exploited 36.78 million tonnes phosphorus ore, increasing by 25.5% year on year. Hubei, Yunnan, Guizhou and Sichuan are the main production areas. According to the announcement of the Sate Council in June 2011, the Sate Council will continue to encourage phosphorus resource exploitation in Yichuan of Hubei Province, the middle part of Yunnan Province and Kaiyang of Guizhou Province to develop local phosphorus chemical industry and set up phosphorus chemical bases.

Besides levying lower resource tax, the government also directly rewarded companies on encouraging low grade phosphorus ore exploitation. In Feb. 2011, Ministry of Finance and Ministry of Land and Resource jointly rewarded USD1.55 million (RMB10 million) to Hubei Dayukou Chemical Co., Ltd. which has made great progress in exploiting and utilizing low grade phosphorus ore.

Moreover, government will continue to implement phosphorus ore export quote system in the coming years to protect phosphorus resource and to realize phosphorus industry sustainable development in China.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at econtact@cnchemicals.com. You can enjoy early-bird offer if you subscribe now. From 16th Sep. to 15th Oct., 2011, you can get one year with 4 extra free issues. From 16th Oct. to 15th Nov., 2011, you can get one year with 2 extra free issues.

(Guangzhou China, September 26, 2011)

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