January 30, 2007


China's New Hope to build phosphate plant in Yunnan



New Hope Group has signed an agreement to cooperate with Luquan Miao autonomous county in setting up a new phosphate processing plant in Yunnan that would produce 300,000 tonnes of calcium phosphate annually when completed.


The new plant would harness the advantages of the group's experience in the phosphate processing industry together with Kunming's reputation as a phosphate processing region and Luquan county's rich mineral resources.


New Hope plans to invest RMB600 million on mining facilities on a site with an estimated 2 million tonnes in phosphate deposits and set up a plant for chemical production at the same site. When completed, the facility would manufacture 300,000 tonnes of calcium phosphate, 100,000 tonnes of other phosphate salts and 200,000 to 400,000 tonnes of vitriol acid.


The chemical plant is the major project for the company in 2007. New Hope Group will break ground for the facility in early 2007 and begin production by 2008.