On January 8th, Sinochem Fertilizer Company Limited (Sinochem Fertilizer for short) under Sinochem Group signed an equity transfer agreement with Sichuan Lomon Corporation and Tibet Longsheng Investment Management Co., Ltd., under which Sinofert would acquire 100% equity interests of Xundian Lomon Phosphorus Chemicals Co., Ltd. (Xundian Lomon for short) possessed by the latter two parties for a total consideration of RMB1.38 billion.
Xundian Lomon possessed abundant phosphate resources, as it owned, either directly or indirectly, one phosphate mine with the mining license and four phosphate mines with exploration licenses. Moreover, the company enjoyed a leading position in China in terms of its feed grade phosphate business. Therefore, this acquisition will be conducive for Sinochem Fertilizer to establish an industrial platform in Southwest China which is rich in phosphate resources, to integrate new phosphate and coal resources and develop the phosphorus chemical industry.
As an important chemical and mineral raw material, phosphates are mainly used for the manufacture of phosphate fertilizer and also for production of yellow phosphorus, phosphoric acid, phosphide and other phosphate compounds, which are used in medicine, food, dye and other industrial sectors.