Mining Phospates in Yunnan - Potential is Great, But So Are Problems

Recent accelerated exploration efforts in southwest China have progressively quantified the vast phosphate resources in the Yunnan Province. To date, according to Chinese geologists, potential reserves in the province may be on the order of 4 Gt, which would equal the entire US reserve base. Development of this vast reserve is underway at two sites located 60-70 km southwest of Kunming, the provincial capital of Yunnan. The first, the Kunyang open-pit phosphate mine, produces an estimated 1.5 Mt/a of 22-30% P20,5. The other project located north of Kunyang is the Haikou mine, which the Chinese consider a possible 2.0-Mt/a operation. Because average ore grades run 3% less than those of Kunyang, beneficiation will be necessary. While the latter project has been initiated on a small scale, it is basically still on the drawing board. Brown and Root and the US Bureau of Mines are assisting on the project. Both operations are under the direction a regional administration which reports to the Ministry of Chemical Industries in Beijing. Combined production from both mines could represent some 70% of China's future productive capacity. Ore reserves in the region are estimated at 400 Mt by local officials. Geology of the District The phosphates are considered Cambrian in age and rest on a Precambrian dolomite. The Indian Ocean, Chinese geologists say, may have been the original source. The line of deposition stretches on a trend from Vietnam in the southwest, through Yunnan, into Sichuan Province to the northeast. Because the area is considered very stable from a geologic viewpoint, large quantities of phosphate have been deposited and large outcrops are known to occur everywhere in the province, according to Chinese sources. The Kunyang and Haikou ore bodies are thought to be two wings of an anticline with the former the southern portion, and the latter the northern portion. Each ore body strikes on an east-west axis. While there are many localized phosphate operations throughout the province, the Kunyang mine is the premium producer. Kunyang's Mining Development The Kunyang open-pit mine was opened in 1966. During the early years, operations were considered somewhat disorganized. Systematic mine planning and normal operations were not initiated until just two years ago, according to mine management. In 1979, Kunyang finally reached its design capacity of 1.5 Mt/a. The ore body consists of two phosphate beds separated by a band of shale. The top layer of phosphate varies from 4 to 8 m, averaging 6 m. The middle shale layer is 2 in. The third layer, which is not as rich as the top, is approximately 4 m. To further complicate matters, the ore dips 15° to the south over a strike length that is currently undefined, but believed to be