Xingfa Group granted Houping Phosphate Mine’s 2-million-ton mining safety production license

Date:12-22-2022

Hubei Xingfa Group announced on December 13 that it had been granted the safety production license for its annual 2-million-ton mining project at Houping Phosphate mine.

Xingfa Group said that the grant of the safety production license demonstrates Xingfa Group’s full completion of legal procedures required for the production run of the 2-million-ton mining project. It meant that all external permits and internal production conditions required for the official start of production for the phosphate mine, are ready.

After the project becomes operational, it will generate further economic benefits from the mine. In addition, it will enhance the capacity of supply of phosphate resources and will reinforce the upstream and downstream integrated phosphorus chemical industry chain of Xingfa Group. 

At the same time, Xingfa Group made it clear that it would still take some time for the project to ramp up to its full capacity. This could mean a risk for the phosphate market, which could see a substantial price fall resulting from the significant change in the phosphate market and in China’s national industrial policies. This may result in unexpected economic returns from the project, and investors need to be cautious about the investment risk.