Since the beginning of this year, due to the influence of the international market, the supply of potash fertilizer in the domestic market has risen sharply, the contradiction between supply and demand has been sharpened, and farmers have responded very strongly. In this regard, the central leadership is highly concerned. According to the spirit of the meeting of the State Council and the joint deployment of the Fertilizer Supply and Stabilization Special Action Group, in order to understand the situation of domestic potash fertilizer production and engineering construction, increase policy support, eliminate constraints in production and development, increase production capacity of potash fertilizer as soon as possible, and increase domestic Supply, reduction of foreign dependence, suppression of excessive domestic potassium fertilizer prices, and reduction of peasant burdens. May 12-15: Deputy Director Chen Shihai of the National Development and Reform Commission, led by the Ministry of Industry and Information Technology, the Ministry of Finance, and the Ministry of Finance. The Department of Transportation, the National Development and Reform Commission and the relevant comrades of the Department of Industry and Industry formed a research group to conduct research on the production of potash fertilizer in Qinghai Province. The research team inspected the production site of the Qinghai Salt Lake Group at the scene and held a symposium on potash fertilizer production and engineering construction. The Qinghai Development and Reform Commission and the country’s major potash fertilizer production enterprises attended the meeting to introduce the production and construction situation.
At the symposium, Comrade Chen Shihai, head of the research team, conveyed the instructions and overall arrangements of the State Council, informed the supply and demand situation of potash fertilizer at home and abroad, and pointed out the development trend. He pointed out that potash fertilizer supply involves agricultural production, especially food security, related departments, governments at all levels, and production. Enterprises should attach great importance to unifying their thinking to the decision-making of the central government and further do a good job of potash fertilizer production and supply.
Through on-site investigation and discussion, the research team has a comprehensive understanding of potash fertilizer production and engineering construction. According to statistics, in 2007 there were 80 potash fertilizer production enterprises above designated size in China, and the total industrial output value was 11.8 billion yuan. Among them, there are 45 in Qinghai Province, with a total industrial output value of 6.7 billion yuan. In 2007, China produced 2.499 million tons of potash (calculated as potassium oxide, the same below), of which Qinghai accounted for 95% and Xinjiang accounted for 2.2%. Qinghai Salt Lake Group is the largest potash fertilizer producer in China. In 2007, the output of potash fertilizer was 1.176 million tons, accounting for 47% of the country's total. From January to April of this year, the country produced potassium 667 thousand tons, an increase of 6.2% year-on-year.
Since the 10th Five-Year Plan, the National Development and Reform Commission has actively promoted the construction of the three major potash fertilizer projects. First, the Qinghai Salt Lake Group's 1 million tons of potassium chloride (0.6 million tons of potassium oxide) works. The project was approved by the State Council to be listed as one of the top ten projects for the Western Development in 2000. By the end of 2003, the project was completed and put into production. After two years Pilot production, achieved in 2006 reached the standard of production. Second, Qinghai CITIC Guoan 1 million tons of potassium and magnesium fertilizer (off potassium oxide 340,000 tons) project, the project started construction in 2005, has now formed 300,000 tons of potassium and magnesium fertilizer production capacity, all projects will be completed in 2009. The third is the SDIC's 1.2 million tons of potassium sulphate (600,000 tons of potassium oxide) project. The project started construction in 2006 and is expected to be completed this year. The production capacity can be formed next year.
The survey found that while China's potash fertilizer production and development maintains a good running trend, there are also urgent problems to be solved in the areas of safe and stable long-term operation and expansion of production, production and operation environment, and production capacity, etc., in order to further increase the output of potash fertilizer and suppress the price of potash fertilizer. The research group pointed out that the production companies must strengthen production organization management, optimize operations, ensure full-load production, strive to extend the annual operating time, and fully tap the production potential; local governments must increase resource supervision and improve resource development and utilization. In a timely manner, it will help enterprises to supply and connect potassium mineral resources, water resources, and electricity; related departments shall further increase support for oil and natural gas supply, product transportation, and taxation policies.
At the symposium, Comrade Chen Shihai, head of the research team, conveyed the instructions and overall arrangements of the State Council, informed the supply and demand situation of potash fertilizer at home and abroad, and pointed out the development trend. He pointed out that potash fertilizer supply involves agricultural production, especially food security, related departments, governments at all levels, and production. Enterprises should attach great importance to unifying their thinking to the decision-making of the central government and further do a good job of potash fertilizer production and supply.
Through on-site investigation and discussion, the research team has a comprehensive understanding of potash fertilizer production and engineering construction. According to statistics, in 2007 there were 80 potash fertilizer production enterprises above designated size in China, and the total industrial output value was 11.8 billion yuan. Among them, there are 45 in Qinghai Province, with a total industrial output value of 6.7 billion yuan. In 2007, China produced 2.499 million tons of potash (calculated as potassium oxide, the same below), of which Qinghai accounted for 95% and Xinjiang accounted for 2.2%. Qinghai Salt Lake Group is the largest potash fertilizer producer in China. In 2007, the output of potash fertilizer was 1.176 million tons, accounting for 47% of the country's total. From January to April of this year, the country produced potassium 667 thousand tons, an increase of 6.2% year-on-year.
Since the 10th Five-Year Plan, the National Development and Reform Commission has actively promoted the construction of the three major potash fertilizer projects. First, the Qinghai Salt Lake Group's 1 million tons of potassium chloride (0.6 million tons of potassium oxide) works. The project was approved by the State Council to be listed as one of the top ten projects for the Western Development in 2000. By the end of 2003, the project was completed and put into production. After two years Pilot production, achieved in 2006 reached the standard of production. Second, Qinghai CITIC Guoan 1 million tons of potassium and magnesium fertilizer (off potassium oxide 340,000 tons) project, the project started construction in 2005, has now formed 300,000 tons of potassium and magnesium fertilizer production capacity, all projects will be completed in 2009. The third is the SDIC's 1.2 million tons of potassium sulphate (600,000 tons of potassium oxide) project. The project started construction in 2006 and is expected to be completed this year. The production capacity can be formed next year.
The survey found that while China's potash fertilizer production and development maintains a good running trend, there are also urgent problems to be solved in the areas of safe and stable long-term operation and expansion of production, production and operation environment, and production capacity, etc., in order to further increase the output of potash fertilizer and suppress the price of potash fertilizer. The research group pointed out that the production companies must strengthen production organization management, optimize operations, ensure full-load production, strive to extend the annual operating time, and fully tap the production potential; local governments must increase resource supervision and improve resource development and utilization. In a timely manner, it will help enterprises to supply and connect potassium mineral resources, water resources, and electricity; related departments shall further increase support for oil and natural gas supply, product transportation, and taxation policies.
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