In the previous period when Chinese companies failed to acquire “potash†and the Chinese people were particularly disappointed in the industry, on 9 October, Yanzhou Coal Mining Co., Ltd. unexpectedly issued an investment announcement saying that the company’s Canadian resources are limited. The company’s $260 million acquisition of 19 mineral exploration rights for potassium mineral resources in Saskatchewan, Canada, has been approved by the Chinese and Canadian government authorities and has completed the process of change of mineral exploration rights. For a time, this unexpected good news shocked the entire industry. Juice Cups,Plastic Juice Cup,Juice Cups With Lids,Portable Juice Cup Zhongshan Lianwei Electrical Technology Co., Ltd. , http://www.zslwwaterpump.com
According to the Yanzhou Coal Industry Announcement, on July 18 this year, the company signed the "Purchase Agreement" with Canada's Devonne Potash Corp. and North Atlantic Potash Corp. On September 22nd, Yanzhou Coal designated its wholly-owned subsidiary, Canada, Yancoal Canada Resources Co., Ltd. to modify and implement the agreement. Pursuant to the “Purchase Agreementâ€, Yancoal Canada Resources Co., Ltd. has invested US$260 million to acquire 19 prospective mineral resources in Saskatchewan, Canada. Among them, 11 potash mineral exploration rights were acquired from Dworkne Potash Corp. and 8 potash mineral exploration rights were acquired from North Atlantic Potash Corp. As of September 30, the transaction has been approved by the Chinese and Canadian government authorities, Yancoal Canada Resources Co., Ltd. has completed the process of change of prospecting rights registration.
The 19 potassium mineral resources exploration rights covered by this transaction cover a total area of ​​5,363.84 square kilometers, all of which are located in Saskatchewan, Canada, which is known as “the world capital of potassium mineralsâ€. It is reported that the province has a total reserve of about 800 billion tons of potash resources, accounting for more than half of the world, and is Canada's major potash mining and potash fertilizer production base. The Saskatchewan government has divided the exploration rights of potash resources in 180 blocks. Since 2006, all blocks have been successively selected by Canadian Potash Corp., Western Potash Fertilizer, First Potash Fertilizer, BHP Billiton, Russian Akon Company, Rio Tinto, and Freshwater. After the river valleys are divided up, it is increasingly difficult to obtain potash resources. Potassium mine license blocks to be acquired this time are relatively concentrated, with large area, high grade, abundant reserves, and stable deposits. Qualified professional organizations initially estimate that the total potential resources are huge, and the conservative estimate is no lower than 39.7 billion tons. Based on the resources and mining conditions of the target block, 6 blocks are initially recommended as development blocks, and it is expected that the production of potash will be produced. The scale can reach 4 million tons/year. According to Citibank’s conservative forecast, if one of these blocks can be successfully developed to have a capacity of 2 million tons/year, it will be able to recover all of the investment quickly. However, these need to carry out in-depth exploration work after the completion of the transaction, in accordance with the internationally recognized reserves report principles to prepare accurate assessment data of the amount of potassium mineral resources and reserves, and actively promote the conversion of prospecting rights to mining rights.
For the transaction, Li Zhimin, chairman of Yanzhou Coal, said that the company is very optimistic about the potash industry and the value of the mineral resources, and that this is an opportunity to make full use of the advantages of mining expertise and promote the company to improve profitability. Canada has a rich reserve of mineral resources such as potash, coal and other minerals. Setting up a platform company in Canada can bring Yanzhou Coal's accumulated experience and technical advantages in the geological exploration, well construction, and mining of underground resources, which is in line with Yanzhou Coal. Strategic requirements for the international development of the industry. In this regard, relevant parties believe that Yanzhou Coal is planning to enter the potash fertilizer field. The company's strategy of “from coal to non-coal, from resource extraction to resource processing†has gradually surfaced.
Perhaps because of coincidence, it is interesting that after 10 years of turbulent weather, Canada's largest phosphorus investment project in Hubei Province, China-Canada mineral fertilizers project has finally settled. In mid-August, the Ministry of Land and Resources Approved by Hubei Yichang Phosphorus Industry Group Co., Ltd. to inject the Dianping Phosphate Mine and Shujingping Phosphorite Mine into the Sino-Canadian joint venture company Yichang Maple Leaf Chemical Co., Ltd., which can use two reserves of 60.602 million tons of phosphate rock resources Phosphorous mineral resources exploitation certificate was officially issued to the "China-Canada" joint venture company. According to the "China-Canada" joint venture agreement, the above-mentioned mineral rights will be injected into Yichang Maple Leaf Chemical Co., Ltd. as capital.
One stone provoked thousands of layers of waves, and the industry received favorable comments for the acquisition of 19 exploration rights for potassium mineral resources in Saskatchewan, Canada. Guo Kangze, chairman of the domestic potash fertilizer production and processing company Anhui Tianxiang Fertilizer Industry Co., Ltd., said in an interview: “'You have me, I have you', which is one of the hallmarks of global economic integration. Chinese companies or Canadian companies must be integrated into this torrent if they want to become bigger and stronger. While building a foothold on the domestic market, there are plans and steps to expand foreign markets. This has been proved by many successful experiences." He further stated that potash resources are a scarce global resource, while China is a country with extremely poor potassium resources, and its dependence on potassium imports is more than 50%. It is the largest potash fertilizer importer in the world, which not only restricts the Chinese fertilizer industry Development has made downstream companies miserable. The successful acquisition of “potash†by Yanzhou Coal not only contends for Chinese companies, but also sets an example for Chinese companies to expand overseas markets, and it is very good for the entire industry and even the development of Chinese agriculture.
Background information
Yanzhou Coal mainly engages in coal production, washing and processing, coal sales and railway transportation, coal chemical industry, electric power and other businesses. The Ministry has jurisdiction over two major coalfields in Ganzhou and Jidong, and owns the Xinglongzhuang, Baodian, Dongtan, and Nantun coal mines. Six modern large-scale coal mines, including the coal mine, Jining No. 2 coal mine, and Jining No. 3 coal mine, have proven and putative reserves of 1.866 billion tons. The company is located in Jining City, Shandong Province, China. It is located in the forefront of China's most economically developed East China region and North Coal South, and is adjacent to Japan and South Korea, the world's major coal importing countries. The unique geographical location and transportation advantages make it one of the most competitive large-scale coal companies in the Northeast Asian market and China's East China and South China markets. The company was selected as one of Platts' global 250 energy companies in 2010, ranked sixth in the global coal and consumer fuels category, and third in Asia's coal and consumable fuels category.
In recent years, Yanzhou Coal has been unable to meet domestic and even coal industry development. On October 23, 2009, Yanzhou Coal purchased Felix Resources Australia and initially established a coal business development base in Australia. Afterwards, like other domestic companies, they once again aimed their sights on the Canadian Potash Resources on the other side of the ocean.