China's Next Resource Push Targets PotashBy staff reporter Yan Jiangning09.17.2010 12:56
China's Next Resource Push Targets Potash
Keeping Chinese farms supplied with fertilizer is the goal of a Zhongchuan Mining
Some time ago at a mining conference in Canada, Zhongchuan President SunXiming Mining found himself seated by Wang Min, China's vice minister of landand resources. Sun asked Wang to advise him on the types of mining assets heshould invest in.
The vice minister suggested "going into iron and potash. That's what Chinaneeds most."
Farms in China consume up to 11 million tons of potash fertilizers annually,with about 70 percent of this supply imported, according to the 2009 edition ofU.S. Mineral Commodity Summaries.
The Chinese government has put great emphasis on increasing potash reservesin recent years, investing more in exploration and expanding existing projectsin regions such as Qinghai and Xinjiang. But these efforts have apparentlyfailed to ease the shortage.
China's current reserves are mainly low-grade "salt lake" potash, said potashexpert Zheng Mianping at the Chinese Academy of Geological Sciences.Exploitation costs are high in these areas, he said, and investment cycles arelong.