China has invested huge sums of money to exploit minerals in Laos.
The first freight train of the China-Laos Railway to China departed on the afternoon of December 3, right after this railway line was officially inaugurated.
Among the cargo carried on board were potash products manufactured by a Sino-Laos joint venture called Sino-Agri International Potassium.
Chinese company mines potash in Laos
It is known that before that, China had a company called East Steel Tower (headquartered in Qingdao) also involved in investment and mining potash in Laos. In 2020, the company announced that it wants to double the plant’s output to 1 million tons of potassium chloride.
East Steel Tower has restructured its assets in October 2016 to indirectly own Lao Kaiyuan Mining with the aim of increasing revenue through fertilizer business.
Laos has an abundant source of potassium, which has the potential to bring great economic benefits. Laos’ potassium reserves are concentrated mainly in two areas: the area near the capital Vientiane (the reserve is about 50 million tons, according to the Lao government’s data) and the area in Khammouane province.
Lao Kaiyuan Mining is an international enterprise specializing in the production and sales of potash fertilizers, with a mine and factory located in Nongpeu village, Thakhek district, Khammouane province. The company currently owns 141 square kilometers of potash mining rights in Laos. Of which, reserves of potassium chloride reach 218 million tons in Khammouan province, and are easy to exploit.
The factory’s products are mainly sold to China, India, Vietnam and other Southeast Asian countries, according to the company’s website. In 2018, the company sold 550,000 tons of potash.
In the future, the parent company wants to increase the annual capacity of the plant to 1.5 million tons. First, to reach a production capacity of 1 million tons, the company is estimated to spend 1.9 billion yuan during the 2-year construction period. About 70% of the investment will be used to upgrade the factory while the rest will add to the liquidity of the listed company.
Established in October 2008, Lao Kaiyuan Mining Company has the right to explore 141 square kilometers of potassium and magnesium salt mines in Khammouane and Savannakhet provinces of Laos.
The company has invested and organized a large amount of human and material resources to explore and develop the potassium salt mine and have obtained remarkable results, notably about 400 million tons of potassium chloride have been identified. sure.
In 2015, talking to Vietnam Agriculture newspaper, Mr. Nguyen Tan Dat, former General Director of Southern Fertilizer Joint Stock Company, said that for Vietnam, potassium mined in Laos has many advantages compared to traditional imported products. long ago from North America and the Middle East, for example geographical advantage.
Accordingly, fertilizers imported from Laos will save transportation time, do not need to place large volumes, and avoid the risk of price fluctuations. Not to mention, the potassium of Laos has a very high potassium content, the lowest is from 60%, equivalent to or higher than imported from distant countries. Due to the lower transportation costs, the price of potassium in Laos is also cheap and thereby helps reduce costs for farmers.
A representative of Lao KaiYuan Mining company said that the company’s potash has been supplied to many countries in the region and around the world. The company’s large production output ensures a stable and long-term supply of goods.
Commodities, including raw materials, rubber, rice and fresh farm produce, could be shipped to China and then Europe via the new rail network. This will give impetus to not only the local economy but also to other countries in the region such as Thailand, Malaysia, Singapore and Myanmar.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
