Be-Long Corporation’s Blog

5 June, 2008 – The production of phosphates in the Sichuan region of China could be disrupted for up to three years, with the country’s largest producer Lomon Corporation facing an estimated repair bill approaching half a billion dollars, an industry insider has said.    The corporation’s subsidiary, Sichuan Lomon Phosphorous Co, has 22 mines in the province. Latest information suggests that most, if not all, of the sites have suffered extensive damage. Vital road networks linking the mines and Lomon’s processing plants have also been seriously damaged. The total cost of all repairs to the company’s entire Sichuan operation is thought to be RMB 3 billion (US$433 million).

Sichuan Lomon Phosphorous claims to have an annual capacity of 1.8 million tons of phosphorous products. Among other products, the firm manufactures 500,000 tons of feed-grade DCP and 50,000 tons of feed-grade MCP per year.

Other producers in the region are believed to have suffered much less damage but it is estimated that phosphate production will not return to normal levels until mid 2011 as much of the reconstruction capacity will be concentrated on rebuilding infrastructure, such as road and rail links.

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