Economy

China's COMPLANT to form a JV potash plant in Congo

(Xinhua)
Updated: 2010-02-01 17:39

BEIJING: China National Complete Plant Import and Export Corp Ltd (COMPLANT) plans to form a joint venture potash fertilizer plant in the Republic of Congo, west Africa, according to a company statement filed to the Shenzhen Stock Exchange Monday.

According to an agreement COMPLANT signed with MagIndustries Corp, of Canada, the joint venture, located in Mengo, was expected to cost less than $1.2 billion, and would have an annual output of 1.2 million tons of potash fertilizer upon completion.

MagIndustries, a public company enlisted on the Toronto Stock Exchange, mainly evaluates key mineral licenses acquired in the Republic of Congo.

The Beijing-based import and export company would be the contractor in charge of engineering, procurement and construction (EPC) for the project, and would have to finance EPC itself, according to the agreement.

COMPLANT said in the statement that the agreement, as preparation for the contract, which would be signed in six months, was not legally binding.

The company also warned investors that the gains of the project might not cover for the cost.

The stock price of COMPLANT Monday closed 5.27 percent higher at 11.18 yuan ($1.64), making its market value 3.31 billion yuan.