Hubei Xingfa Chemicals Group, which produces phosphate and other chemicals intended for agricultural use, has fully acquired Hubei Yichang Phosphide Group from controlling shareholder Yichang Xingfa Group for 331.98 million yuan (about US$ 52.5 million).
Phosphide Group’s subsidiary has mining rights to two phosphate ores mines with total available reserves of over 60 million tonnes and a total production capacity of over 2 million tonnes per year.
Xingfa Chemicals Group has about 160 million tonnes of phosphate reserves, with an annual production capacity of nearly 3 million tonnes at present.
The development of a phosphate ore mine reportedly requires an investment of some US$ 45-50 million, with an infrastructure development period of 2-3 years.
Currently, the Phosphide Group’s two mines are still being prepared for infrastructure development and are unlikely to make a significant contribution to the actual output before 2014. Significant funds need to be invested in construction over the next two years.
Founded in 1994, Hubei Xingfa Chemicals Group Co., Ltd (Hubei Xingfa) is located in Xingshan County, Yichang City, Hubei Province. Hubei Xingfa as the largest phosphates production base in central China, has technical grade, food grade, toothpaste grade, and feed grade products: sodium tripolyphosphate 280,000 tpa STPP, yellow phosphorus 75,000 tpa, sodium hexametaphosphate 66,000 tpa, dimethyl sulfoxide 20,000 tpa, sodium hypophosphite 11,000 tpa, phosphorus pentasulphide 6,000 tpa , sodium acid pyrophosphate 10,000 tpa. Their strategy for the next years is to achieve the upgrading from technical grade products to food grade and electronic grade products, from inorganic phosphates to organic phosphates, and develop non-phosphate fine chemical products.