The Henan Province Bureau of Geology and Minerals announced earlier that it had discovered a large natural alkali mine in Tongbai County, Henan Province, with proven reserves exceeding 72 million tons and symbiotic mirabilite resources amounting to 100 million tons, of which, the size of natural alkali mines currently It is the first in Asia and the second in the world, second only to the Green River trona mine in the southwestern part of Wyoming, USA. According to the reporter’s confirmation, the alkali mine is located in Caozhuang Mining Area in Tongbai County. Henan Tongbai is honored as “the capital of China's natural alkali†and has extremely rich alkali mineral resources. The county’s natural alkali reserves account for more than 80% of the country’s total reserves, and its proven natural alkaloid reserves reach 150 million tons. Reserves 3 to 500 million tons. At present, the county has cooperated with large-scale enterprises to establish "Zhongyuan Chemical City", which is based on alkali chemical industry. The province's largest chlor-alkali chemical company, Henan Shenma Chlor-Alkali Development Co., Ltd., is a 99.81% subsidiary of the listed company Shenma. Petronas is the raw material of caustic soda which is its main product. Its caustic soda business contributed 464 million yuan in gross profit for the parent company Shenma Industry last year. The profit amount is the highest among all businesses and the gross profit rate is also as high as 54.04%. Relying on Asia's largest natural alkali mine, Henan Tongbai local company's natural cost of alkali production is 50% lower than that of similar domestic companies. With the increasingly stringent environmental protection requirements of the country in the soda industry, the threshold for expansion of production capacity in the soda industry is also increasing, and it is unlikely that the price expansion will result in price declines. Instead, it will further consolidate the resource advantages of the upstream companies. The Caozhuang Mining Area discovered the second largest natural alkali mine in the world. With the price of caustic soda rising steadily in the past three months, the dilution of raw material costs will further increase the gross profit margin of the upstream company.
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