Potash Potential Production Capacity Will Double

Behind the hot market shift is the current domestic potash production capacity.

At present, the existing potash production capacity in China is mainly concentrated in Qinghai Golmud and Xinjiang Lop Nor areas, which are also the focus of future development.

According to Potash Corp's expansion plan, the total domestic potash production capacity is expected to increase from about 5 million 500 thousand tons to 10 million tons.

Among them, the product of potash fertilizer in Saline Lake is potassium chloride, its annual capacity of potassium chloride is 2 million tons, and its market share is about 25%. In 2009, the company produced 2 million 140 thousand tons of potassium chloride products and sold 2 million 20 thousand tons in 2009, and 1 million 390 thousand tons of potassium chloride in the first half of 2010.

In June, the SFC was conditionally absorbed through Saline Lake's potash fertilizer to merge Saline Lake.

Another listed company, 20.3% of Kun Nong shares, has invested in Xinjiang Lop Nor potash limited liability company. The first phase potassium sulphate project has been put into operation and has an annual capacity of 1 million 200 thousand tons. It is the largest potassium sulphate producer in China.

At present, the second phase project is 1 million 800 thousand tons / year potash fertilizer project is being built, and will produce 3 million tons / year potash fertilizer production capacity when completed, and the company will become the world's largest producer of potassium sulfate.

CITIC Guoan an absolute holding of Qinghai CITIC Guoan Technology Development Co., Ltd. is also one of the main business of potash fertilizer business. According to the statistics of Huatai joint Securities Research Institute, its annual capacity of potassium sulphate and potassium sulphate and magnesium is up to 300 thousand tons.

At the end of August this year, in order to bring benefits to the potash company as soon as possible, the international industry joined the CITIC Group to operate Xinjiang potash, and pferred the 80% stake of its wholly owned subsidiary Xinjiang potash Mineral Resources Development Co., Ltd. to the China Annwa Group Corporation of CITIC Group.

Xinjiang potash main mineral resources, inorganic salt chemical products investment and development, mineral products, compound fertilizer sales, at the same time also has mineral resources development and operation qualification, has rich natural sodium nitrate resources.

The company has 1 mining rights of sodium nitrate and 23 prospecting rights, and the total area of mining area is 1171 square kilometers.

Xiao Hui, an analyst with Huatai joint securities, believes that the potassium mineral resources currently being developed in Xinjiang, Qinghai and Sichuan can double the existing domestic potash production capacity, but the potential of Chinese related companies to expand overseas is greater.

According to statistics, if the existing overseas projects are put into operation, the cumulative production capacity can reach about 500 thousand tons / year before 2012, and 3 million tons / year can be added in 5-10 years, which may eventually contribute to 10 million tons / year capacity.