Evergreen Industries Holding Group, the world's biggest manufacturer of auxiliary equipment for shipbuilding and marine engineering, purchased Magindustries Corp, a Toronto-listed explorer of potash resource properties in the Republic of Congo.

The privately-owned Chinese firm said it had made a foray into a completely unrelated industry by paying ¥778.35 million for Magindustries so that the latter will have sufficient funds to develop its potash projects in Congo. Magindustries' most important asset is the Mengo mine with an estimated half a million tons of potash deposits in the African country.

Evengreen Industries has set up a mining division and will make it one of the company's top priorities in the future, Evergreen Industries chairman Liang Xiaolei said. It plans to explore South America, Africa and Australia with a focus on strategic natural resources such as potash and iron ore.

Potash, a key ingredient for fertilizer, is what China urgently needs to produce enough crops for food security. China currently has to import 75% of its annual demand for 20 million tons of potash.

$1 = ¥6.44

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