Shida Mining is a mining company based in
Qianxinan Autonomous Prefecture in Guizhou province. Recently, Shida Mining
acquired fluorite ore prospecting rights for three locations in Pu’an and
Qinglong counties in Guizhou province for RMB143 million at an auction, which
indicates that the company is planning to step into the fluorochemical
technology industry.
On October 25, 2021, an on-site auction for
prospecting rights at 3 fluorite mines in Pu'an County and Qinglong County was
held at the Public Resource Exchange Center of Qianxinan Autonomous Prefecture.
Shida Mining Company participated in the bidding along with several other
mining companies. The prospecting rights for each individual mine had on
average over 200 bids, and the competition was extremely fierce. Finally, Shida
Mining Company acquired the prospecting rights for the three fluorite mines in
Pu'an and Qinglong at a total price of RMB 143 million. After prospecting is
finished, the prospecting rights will be directly converted to mining rights.
The three mines contain approximately 620,000
tons of fluorite. The current market price of fluorite concentrate is about RMB
2200 to RMB 2600 per ton, and the market value of the fluorite in the mines is
about RMB 1.4 billion, which may bring around RMB 820 million in profits for
Shida Mining Company.
Fluorite essential for new energy batteries as well as military
equipment
Fluorite, also known as fluorspar, is used to
produce hydrofluoric acid, for which the current market price is approximately
RMB 13,000 per ton. Hydrofluoric acid is a necessary material for the
manufacture of new energy equipment such as lithium hexafluorophosphate
batteries, photovoltaic power generation, and chips for new energy vehicles. It
is also a necessary material for high-tech military defense equipment, and it
is one of China's national strategic reserve resources. At present, there are
six companies listed in the stock market in China that use hydrofluoric acid as
a raw material to produce new energy battery products.
Through the development of its fluorite mine
project, the main business of Shida Group has officially transformed from real
estate development onto the fluorine chemical technology industry track, adding
new development vitality to the enterprise. The development of the fluorite
mine project will increase the income of local farmers, promote rural revitalization,
and stimulate high-quality development of the local economy.
Shida Group plans 75,000 ton per year aluminum fluoride production
project
According to its plan, Shida Group is expected
to invest RMB 500 million to build an aluminum fluoride production base with an
annual output of 75,000 tons in the Xingren Industrial Park. The annual output
value is expected to reach more than RMB 1 billion. Furthermore, the annual
increase in tax revenue for the local area will reach more than RMB 200
million, and the annual profit for the enterprise will be more than RMB 500
million.
In its next step, Shida Mining will develop
electronic grade hydrofluoric acid and lithium hexafluorophosphate products for
new energy vehicle batteries and enter the high-end fluorine chemical
technology markets.
For more information, please check our China Fluoride
Materials Monthly Report