en.Wedoany.com Reported - In July 2026, a major mining project in Leizu Town, Yuan'an County, Yichang, China, reached a critical milestone as the Yangliudong Phosphate Mine's 4 million tons/year mining operation entered the preparatory phase for construction. The total investment in the project is 5.32 billion yuan, with proven phosphate rock reserves of 206 million tons, a designed mining scale of 4 million tons/year, and an overall mine service life of 54 years, making it another landmark large-scale underground mine project in Hubei's phosphate mining sector.
The construction unit for the Yangliudong Phosphate Mine is Yuan'an Xinghua Mining Co., Ltd., with a highly impressive equity structure: Xingfa Group holds 45%, Wanhua Chemical holds 40%, and Yichang City Development holds 15%. Xingfa Group is a leading phosphate chemical company in China, with 800 million tons of phosphate rock reserves and an industry-leading resource self-sufficiency rate. Wanhua Chemical is a global chemical giant, rapidly expanding its presence in the new energy materials sector. The collaboration between these two giants to acquire the Yangliudong Phosphate Mine sends a clear signal: high-quality phosphate rock resources are increasingly concentrating in integrated industry chain leaders.
The Yuan'an Yangliudong Phosphate Mine is a large-scale, high-grade phosphate deposit, with estimated economic reserves of approximately 300 million tons and an estimated economic value of 200 billion yuan. Leveraging 5.32 billion yuan to unlock 200 billion yuan in resource value may be one of the most cost-effective investments in the phosphate chemical industry in recent years. The mining area of the Yangliudong Phosphate Mine covers 10.0191 square kilometers, with proven reserves of 206 million tons and an average grade of 23.45%. Two mineable ore bodies, Ph₁ and Ph₂, are present within the area, with Ph₁ as the primary mining layer (accounting for 60%) and Ph₂ as the secondary layer (accounting for 40%). The Ph₃ layer is not currently utilized.
The designed production scale is 4 million tons/year, with a service life of 54 years (including a 5-year construction period). A mine capable of continuous operation for over half a century is a rare asset in the context of increasingly scarce high-quality phosphate rock resources in China. The project has completed reserve filing and development project approval, is currently undergoing environmental impact assessment public consultation, and plans to start construction in 2027. For comparison, the Maping Phosphate Mine, which began production at the end of 2025, also has a scale of 4 million tons/year, reserves of 315 million tons, and a service life of 53 years. It has been recognized as the largest single underground mining operation built and put into production in China. Both the Yangliudong and Maping phosphate mines are located in Leizu Town, Yuan'an County, where these two 4-million-ton-class super mines will stand side by side.
With an investment of 5.32 billion yuan, what are Xingfa and Wanhua targeting? First, phosphate rock is transitioning from an "agricultural raw material" to a "strategic resource." On June 15, 2026, State Council Decree No. 839 officially took effect, listing phosphate rock in the national strategic mineral resources catalog, leading to a revaluation of the scarcity of high-quality phosphate rock. Second, "owning the mine" is the strongest card for phosphate chemical companies. Amid soaring sulfur prices and high raw material costs, owning phosphate rock reserves provides the greatest cost advantage. Xingfa Group, with 800 million tons of reserves, is further deepening its resource moat by acquiring the additional 200 million tons from Yangliudong. Third, 4-million-ton-class super mines are reshaping the phosphate mining landscape in Hubei. The Maping Phosphate Mine (4 million tons/year) is already in production, and the Yangliudong Phosphate Mine (4 million tons/year) is about to start construction. Both super mines are located in Leizu Town, Yuan'an County, in close proximity. Leizu Town in Yuan'an is becoming China's most densely concentrated "super mining district" for phosphate rock production capacity.
When the 5.32 billion yuan investment transforms from blueprints into the roar of rock drills a kilometer underground, and when the 206 million tons of reserves become a daily output of tens of thousands of tons of ore, the construction of the Yangliudong Phosphate Mine is not just another milestone in Hubei's phosphate mining history, but also a footnote in the strategic revaluation of China's phosphate resources.
