China's Zangge Mining and Yuntu Holdings Acquire 92% Stake in Congo (Brazzaville) Potash Project for RMB 1.157 Billion

en.Wedoany.com Reported - On the evening of September 17, Zangge Mining and Yuntu Holdings separately disclosed announcements that the two parties plan to jointly acquire a 92% stake in Kanga Potash (KP Company) through an overseas joint venture platform, at a transaction consideration of USD 171.0466 million, equivalent to approximately RMB 1.157 billion, excluding transaction taxes and fees. Upon completion of the transaction, Zangge Mining will indirectly hold a 69% stake in KP Company and will consolidate KP Company into its consolidated financial statements.

Under the transaction arrangement, Zangge Mining Development (Hainan) Co., Ltd., a wholly-owned subsidiary of Zangge Mining, will establish Zangge United Resources Co., Ltd. through a Singapore platform together with Yingcheng Xindu Chemical Co., Ltd., a wholly-owned subsidiary of Yuntu Holdings. The two parties will hold 75% and 25% stakes respectively, with Zangge Mining's corresponding investment amount at approximately RMB 868 million and Yuntu Holdings' corresponding investment amount at approximately RMB 289 million.

KP Company is incorporated in Mauritius, and its core assets are the Kanga potash mining right and the Loango potash exploration right in Congo (Brazzaville). The Kanga mining right covers an area of 321 square kilometers. According to the resource estimate prepared in 2018 in accordance with NI 43-101 standards, within the mining right area, the controlled resource of potassium chloride is approximately 810 million tonnes with an average grade of 17.12%; the inferred resource is approximately 1.179 billion tonnes with an average grade of 16.47%, totaling approximately 1.989 billion tonnes with a combined average grade of approximately 16.73%.

The Kanga mining right is valid until June 1, 2047. In August 2023, KP Company and related project companies signed the Kanga Mining Convention with the government of Congo (Brazzaville), with an initial term of 25 years. The Loango potash exploration right covers an area of 286 square kilometers, and a second renewal application is currently being processed.

Zangge Mining's existing core businesses include potassium chloride, lithium carbonate, and copper resource investment. In the first half of 2026, the company achieved operating revenue of RMB 2.065 billion, a year-on-year increase of 23.05%; net profit attributable to shareholders of the parent company was RMB 3.638 billion, a year-on-year increase of 102.09%. Among these, the potassium chloride business generated revenue of RMB 1.472 billion, with a gross margin of 65.19%. In January of this year, the Qinghai Provincial Department of Industry and Information Technology approved the adjustment of the potassium chloride production capacity of its subsidiary Golmud Zangge Potash Fertilizer Co., Ltd. from 2 million tonnes per year to 1.2 million tonnes per year.

In terms of overseas potash resources, Zangge Mining is also advancing the Vientiane potash project in Laos. Within the project's 157.72 square kilometer area, the registered potassium chloride resource is approximately 984 million tonnes, with a planned potassium chloride production capacity of 2 million tonnes per year, of which Phase I is planned at 1 million tonnes per year. At present, the project's temporary construction works have completed completion acceptance, and related technical work and subsequent approvals are being advanced.

Yuntu Holdings' existing businesses cover compound fertilizers, phosphate fertilizers, nitrogen fertilizers, yellow phosphorus, iron phosphate, and combined soda, and it also owns upstream resources such as salt mines and phosphate mines. Upon completion of this transaction, the company will add potash resource interests in Congo (Brazzaville).

As of the disclosure date of the announcement, the formal agreement for United Resources Company to acquire a 92% stake in KP Company has not yet been signed.