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Saturday, April 20, 2013

Hongda accused of mining phosphate in panda habitat

Want China Times, Staff Reporter 2013-04-20

A wild panda. (Photo/CFP)

Chinese conglomerate Hongda Group and its subsidiaries have confirmed their right to mine phosphate in the southwestern province of Sichuan, though they did not specify whether company mines were located in panda habitats, the Guangzhou-based 21st Century Business Herald reports.

The production of phosphate chemical companies has triggered concern over damage to the environment, said geologist Yang Yong.

Jiudingshan, one site facing encroachment from mining companies, was originally designated as a protected panda habitat. Part of the area is being withdrawn from protected zones, the report said.

In August last year, about 300 hectares of panda habitat in Jiudingshan was withdrawn from an area restricted from exploration. The area is prime property for phosphate mining, said Greenpeace official Lang Xiyu, who had visited the area several times during 2012-2013.

Hongda chief engineer Yang Shouming confirmed that the group owns the mining rights in the mountain region through some newly invested subsidiaries, but did not comment as to whether they fell into the newly opened territory, the report said.

It was only after a reporter from the newspaper dug through government records that a document was uncovered confirming that the 325 hectares of land was withdrawn after a request from a Hongda subsidiary was filed with the government.

Since 2010, one ton of phosphate now sells for 500-600 yuan (US$80-$97) from a previous price of just below 100 yuan (US$16), the report said.

Hongda currently produces 500,000 tons of phosphate a year, all purchased from other mining companies, said the company's chief engineer. The potential value of the Jiudingshan area is obviously tantalizing to the group, the report said.

It is a fight between ecology and economy, Yang Yong said.

According to Sichuan's economic development plan, the province's phosphate production capacity is expected to reach 1,359 tonnes a year by 2015, the report said.


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