China-based Asia-Potash International Investment (Guangzhou) Co. Ltd. expects to start operations at its potash project in Laos ahead of schedule after making good progress in securing a mining agreement with the Laos government, according to a bne IntelliNews report, citing the Vientiane Times.
The Chinese company, which is working on the project through subsidiary Sino-Agri International Potash Co., has completed all geological exploration work in six months on a 48.52 km2 exploration area of potash salt deposits in Laos’ central Khammouane Province.
As a result, the mining rights for the exploration area are expected to be upgraded from exploration rights to mining rights one year ahead of schedule, according to the report. Asia-Potash International, which is based in China’s southern Guangdong Province, applied for mining rights in April 2022, and the agreement was officially signed on Nov. 28, 2022.
According to Asia-Potash International’s website, Sino-Agri International earlier completed a 100,000 mt/y potash fertilizer pilot project, and is targeting an initial potash production facility of 500,000 mt/y, ultimately looking to expand to some 1 million mt/y.
Asia-Potash International, through Sino-Agri International Potash Co., signed a Memorandum of Understanding (MOU) in March with the Laos government for the joint development of “the Asia-Potash Intelligent Circular Industrial Park,” some 250 km from the Laos capital, Vientiane, in Khammouane Province (GM March 21, p. 27).
The proposed park will be separated into three sectors, one of which will be a potash fertilizer sector that will be used to develop an industry based on local potassium ores, according to Sino Agri Managing Director and General Manager Tong Yongheng.
Potash fertilizer output of Chinese companies active in Laos was 1.5 million mt in 2021, and is targeting 5 million mt by 2025, according to an April 2022 report by Guosen Securities, a Chinese state-owned financial services company headquartered in Shenzhen, China.
According to Trade Data Monitor, a total of some 592,598 million mt of Laos potash was imported by various countries in 2021. Of that total, China was the biggest importer, taking 416,617 mt, increasing its imports of Laos potash to 606,987 mt in 2022. Indonesia and Thailand were the next biggest importers, both in 2021 and 2022.