A steel production workshop owned by Baogang Group, the largest steel company in Inner Mongolia autonomous region [Photo/Baotou Daily]

Baogang Group, a State-owned iron and steel company based in Baotou in North China's Inner Mongolia autonomous region, is to develop the country's largest fluorite and fluorine chemical industry base, using its 130 million metric tons of fluorite resources, reports Baotou Daily.

Baogang Group is set to achieve the goal following a cooperation agreement signed with Longda Food Group Co, Zhejiang Yonghe Refrigerant Co, and China Kings Resources Group.

The estimated investment required by the project is 1.93 billion yuan ($295 million). After its completion, following seven years of construction, the annual output of fluorite will reach 800,000 metric tons, the highest in the world. By that time, Baotou will become the country's largest fluorite and fluorine chemical industry base.

Fluorite is the main source of fluorine and an important mineral raw material for modern industry. It is widely used in strategic emerging industries such as new energy and new materials, as well as defense, military, the nuclear industry, the chemical industry, optics and other fields. It is a national strategic scarce mineral.

China Kings Resources Group has professional talents and dozens of patented technologies. In recent years, the technology for producing light hydrofluoric acid from low- and medium-grade fluorite powder in fluorine chemical fluorite resources has overcome the problems inherent in the development and utilization of fluorite resources.

During the 14th Five-Year Plan period (2021-25), Baotou will become an important modern energy industry base, improve the efficiency of the comprehensive utilization of traditional energy, and build a new energy advantageous industrial cluster.

Baotou's fluorite resources will ensure the sustainable development of the domestic fluorite strategic resource industry, and will also help Baotou build an important modern energy industry base in the country.