Why We Don't Have the Phosphate Resources--An Investigation into the Difficulties of Yunnan Primary and Secondary Calcium Production Enterprises

Last year, the newspaper reported that Yunnan's calcium production companies were struggling for survival due to strict transportation restrictions. This year, before the Spring Festival, reporters received multiple calls from general calcium manufacturers in Yunnan, highlighting new challenges brought by mining restrictions. Many small and medium-sized enterprises have halted operations entirely. In response, the reporter conducted a follow-up investigation to understand the current situation. According to some companies, Yunnan has been implementing large-scale consolidation of phosphate rock resources since last year, with major enterprises now controlling the supply. As a result, smaller fertilizer producers face severe difficulties in obtaining raw materials. Many of these companies are unable to afford the high prices or secure reliable sources of phosphate rock. At Yunnan Lufeng QinPeng Chemical Co., Ltd., the company currently produces 300,000 tons of calcium, 120,000 tons of sulfuric acid, and 180,000 tons of phosphate rock powder. Previously, they sourced phosphate rock to produce calcium sulfate. However, with limited access to phosphate ore, the company has had to shut down its phosphate rock powder production line. The company’s manager expressed hope that they could purchase phosphate rock through formal channels, as informal methods lead to higher costs and no official invoices, making it difficult to record expenses properly. “If we can’t get the raw materials, we can’t produce,” the manager said urgently. “How can we support more than 500 employees?” Luliang Longhai Chemical, another state-owned enterprise undergoing restructuring, is also facing similar issues. Due to the inability to purchase phosphate ore, their annual output of 150,000 tons of general calcium smelters is at risk of being suspended. Despite repeated applications to local economic commissions, the company still hasn’t secured any phosphate ore. Yang Feng Fertilizer Co., Ltd.'s chairman noted that rising costs of sulfuric acid and phosphate ore have made production increasingly challenging. Years of uncoordinated management have led to a decline in high-quality phosphate reserves in Yunnan. High-grade phosphate deposits are now located deep underground, making extraction more difficult and expensive. Additionally, Yunnan's geographical conditions make transportation significantly more costly compared to provinces like Hubei and Guizhou, putting local calcium producers at a disadvantage in terms of pricing. According to a representative from the Yunnan Superphosphate Marketing Consortium, 70% of the 27 member companies are either operating at reduced capacity or completely shut down. Five of them have stopped production altogether. The consortium representative calculated that 12 companies in Jidong and Weinan, which have lost their phosphate ore supply, have seen their production affected. These 12 companies have a combined capacity of 2.3 million tons, but only produced 1.71 million tons in recent years. At an average of 700 kilograms of ore per ton of product, the annual demand for phosphate rock is 1.204 million tons. Although a document was issued by the Yunnan Provincial Mineral Resources Integration Leading Group requesting that Yunnan Phosphorization Group provide the necessary supplies, many companies still cannot obtain phosphate rock through this channel. Experts suggest that joint development may be the only viable path forward for Yunnan's calcium industry. To address the disruption of traditional supply chains after the phosphate rock resource rectification, the Yunnan Chemical Industry Association and the Superphosphate Marketing Consortium proposed in August 2005 that the consortium should handle the unified procurement of coal and coordinate production within the group. A similar directive was issued by the Provincial Office of the Leading Group in September of the same year. However, to date, this proposal remains unimplemented.

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The main pressure parts in a boiler will be as follows:Drums, Water walls, Super heaters, Re heaters, Economisers and valves & fittings. The Drum, Down comers, water wall headers and water walls will form the circulation system and cover the furnace zone.

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