Asia-Potash International Investment seeks to expand Laos potash project
China’s Asia-Potash International Investment has said that it will issue up to $280.5mn in convertible bonds to finance the expansion of its potash facility in Laos, Yicai Global reported on Friday.
According to the news site, the company will use the money to execute the second stage of its project in Khammouane province in central Laos. This will enable it to produce an additional one million tonnes of potash per year, thereby doubling its capacity.
Asia-Potash reportedly has the right to mine potassium ore across an area of 263 square kilometers in Laos – and intends to be able to produce five million tonnes of potash per annum there by 2025.
The Southeast Asian country’s potassium chloride reserves are estimated to stand at over one billion tonnes.
It is likely that most of the potash fertilizer will be exported to China, which has made domestic food security one of its top priorities.