CI Resources signs MOU for Chinese phosphate mine

Subiaco-based CI Resources Ltd has signed a deal with China's Xiangxi Xifeng Chemical Phosphate Co Ltd to develop a new phosphate mine neat the town of Xixi in the nation's Hunan province, the company has announced.

The full text of a company announcement is pasted below

CI Resources Limited (ASX: CII) is pleased to announce that it has entered into a Memorandum of Understanding with Xiangxi Xifeng Chemical Phosphate Co Ltd (XXCP) to investigate the potential to develop a new phosphate mine near the town of Xixi in the Hunan Province of the People's Republic of China.

XXCP holds a mining licence over the area, which has been found to contain phosphate mineralisation by the Chinese Government's Geological Department.

This non-binding MOU establishes a framework for the parties to work together to see if it is commercially feasible to jointly develop the Project.

CI Resources will shortly commence a process to confirm the quality of the geological information and the projected capital and operating costs of the Project.

The MOU is in keeping with CI Resources' strategy to look for quality phosphate assets that enable the company to take advantage of the exceptionally strong outlook for phosphate demand underpinned by increasing global population growth and the need to intensify agricultural practices to supply future food production growth.