In July 2026, the Yangliudong phosphate mine project in Yichang, Hubei – a joint venture between Wanhua Chemical and Xingfa Group – officially entered the pre-construction phase, with infrastructure work scheduled to begin in 2027.
The project has a total investment of 5.32 billion yuan and contains proven phosphate ore resources of 206 million tonnes. It is designed with an annual mining capacity of 4 million tonnes and a mine life of 54 years, including a 5-year construction period. Estimated economic reserves are about 300 million tonnes, with an estimated economic value of 200 billion yuan.
Located in Leizu Town, Yuan'an County, Yichang, Hubei, the Yangliudong phosphate mine is a kilometre-deep underground operation. The ore has an average grade of 23.45%. The mining area covers 10.0191 square kilometres, with a main shaft depth of 990 metres and an auxiliary shaft depth of 1,030 metres. Underground, 12 trackless mining levels are planned, with extraction zones ranging from -20 metres to -460 metres. The project will include a new 110 kV dedicated substation, crushing and screening systems, and four surface backfill preparation systems with six backfill boreholes. Located within the core protection zone of the Huangbai River, the mine is subject to stringent environmental standards. No beneficiation facilities will be built on site; instead, a backfill mining method will be fully implemented, with waste rock kept underground and tailings entirely backfilled.
The development entity, Yuan'an Xinghua Mining Co., Ltd., is owned 45% by Xingfa Group, 40% by Wanhua Chemical, and 15% by Yichang Chengfa. In November 2024, Yuan'an Xinghua Mining won the exploration rights for the Yangliudong phosphate mining area for 618 million yuan. Since then, Xingfa Group and Wanhua Chemical have established multiple joint ventures in areas such as phosphorus chemicals and silicon materials, forming a deep resource-to-materials integration.
Xingfa Group is a leading phosphorus chemical producer in China, with phosphate reserves of 800 million tonnes. Wanhua Chemical is accelerating its new energy materials footprint. Their joint control of the Yangliudong phosphate mine signals a trend in which high-quality phosphate resources are increasingly concentrated among integrated industry leaders.
The project coincides with a major policy shift in the sector. On 15 June 2026, the State Council's Decree No. 839, the Regulations for the Implementation of the Mineral Resources Law of the People's Republic of China, took effect, listing phosphate rock alongside 36 other minerals, including lithium, cobalt, and rare earths, in the national catalogue of strategic mineral resources, subject to integrated management across exploration, production, supply, storage, and sales. The strategic value of phosphate rock has thus been redefined: once viewed primarily as a fertiliser raw material, phosphate ore is now recognised as a critical strategic resource underpinning food security and the development of the new energy materials industry.
The Yangliudong phosphate mine is located in the same town – Leizu – as the Maping phosphate mine, which came into operation at the end of 2025. Maping also has an annual capacity of 4 million tonnes, with reserves of 315 million tonnes and a mine life of 53 years, making it the largest single underground phosphate mine in China. With two 4-million-tonne-class "super" phosphate mines standing side by side, Leizu Town has quickly become the most concentrated and highest-quality phosphate mining hub in the country.
Wanhua Chemical's production of new energy materials such as lithium iron phosphate (LFP) requires a stable supply of high-grade phosphate ore. The Yangliudong mine's 4 million tonnes of annual output over 54 years will provide a long-term "grain barn" for its new energy materials business.
For Xingfa Group, the additional 200 million tonnes of reserves further strengthen its competitive moat. Against a backdrop of increasingly tight supply of high-grade phosphate rock in China, a "long-lived" mine that can sustain production for more than half a century is worth far more than its 5.32 billion yuan price tag.
