Shida Mining obtains fluorite ore prospecting rights for three locations 11-26-2021

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

Subscribe to our Newsletter


Next Press