China-based Asia-Potash International Investment (Guangzhou) Co. Ltd. plans to issue as much as CNY2 billion (approximately $282.1 million at current exchange rates) of convertible bonds to fund the next stage of its potash project in Nong Bok district, Khammouane province, central Laos.
The notes will finance the second stage of the project, which is targeting an additional 1 million mt/y of potassium chloride production capacity, according to a report by Chinese news portal Yicai Global, citing the Guangzhou-based company. The Chinese firm in August reported it was accelerating the potash project (GM Aug. 11, p. 31).
The initial phase of the project is already under construction with a targeted production capacity of 500,000 mt/y, according to Asia-Potash International’s website. The company is developing the potash project through subsidiary Sino-Agri International Potash Co., which earlier completed a 100,000 mt/y potash pilot plant as part of the project.
Sino-Agri International began operations in Khammouane province in 2021, owning the mining rights to potassium ore in a 35 square kilometers area in Khammouane, with a proven K-Mg ore reserve of over 1 billion mt, according to Asia-Potash International’s website.
Since then, Sino-Agri International has secured an expansion of its exploration area in Khammouane province, which, as of August this year, totaled more than 214 square kilometers according to a Radio Free Asia report. The company is reportedly seeking approval from the Laotian government to add a further 48 square kilometers in the province.
Most of the potash produced in Laos is exported to China, which imported 606,987 mt of Laotian potash last year, according to Trade Data Monitor.