1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

Diatomite is porous and lightweight, which is a good raw material for the manufacture of high-quality thermal insulation materials. Diatomite insulation products have high silica content, can withstand high temperature of about 1,000°C, can meet the high temperature resistance requirements of thermal insulation materials in industrial kilns, so they are widely used in metallurgy, chemical industry, building materials, electric power, petrochemical and other industries.

Relying on the mineral resources of diatomite in Changbai County, the project produces diatomite sewage purification materials, diatomaceous earth rubber reinforcing agent fillers, pigments and other products, improves the mineral characteristics of diatomite, and is used in light industry, chemical industry, building materials, petroleum, medicine, health and other fields.

1.1.2 Market prospect

1. The status of diatomite industry in China

Since the 60s of the 20th century, after nearly 60 years of development, China has formed an industrial chain of diatomite processing and utilization second only to the United States. At present, there are three production bases in Jilin, Zhejiang and Yunnan. In terms of product structure, Jilin takes the production of filter aids as the leading products, Zhejiang takes the production of thermal insulation materials as the leading products, and Yunnan takes the production of low-end filter aids, thermal insulation materials, fillers and light wall materials as the leading products. From the perspective of domestic production, China's diatomite output has increased year by year in recent years, and as of 2023, China's diatomite output has reached 3 million tons. Diatomite is used in many fields such as filter aids, thermal insulation materials, construction, papermaking, fillers, catalysts, soil treatment, diatom mud, medicine, etc., and has broad application prospects, but some application fields have not been developed and utilized on a large scale.

China's diatomaceous earth products are mainly used for domestic consumption, and a small amount is used for export. China imports a small amount of high value-added diatomaceous earth every year. After more than 60 years of development, it can produce filter materials, thermal insulation materials, functional fillers, building materials, catalyst carriers and cement mixed materials and other products, which are used in food, medicine, chemical industry, building materials, environmental protection, petroleum, metallurgy, papermaking, rubber, agriculture, animal husbandry and other industries, with more than 500 kinds of products, especially in the fields of filter materials, adsorption and purification, functional fillers, soil improvement, etc., with broad prospects, the importance of diatomite resources has gradually emerged, and has formed three major diatomite bases in Jilin, Zhejiang and Yunnan.

Diatomite resources in China are mainly used for filter materials and insulation materials. Among them, the filter aid is the most important use and mainstream product of diatomite, and the output of filter aid generally accounts for 65% of the total sales volume of diatomite; Fillers and abrasives account for about 13% of the total output of diatomite, adsorption and purification materials account for about 16% of the total output, soil improvement and fertilizer account for about 5% of the total output, and others account for about 1%. In general, the output of diatomite in China showed a steady and rising trend, mainly involving flux calcined products, low-temperature calcined products, non-calcined products, non-calcined granulation, etc. With the development of China's economy and the process of urbanization, China's demand for diatomite resources is increasing.

2. Development and utilization of diatomite in Jilin Province

The development of diatomite resources in Jilin began in the 50s of the 20th century, and was mainly used for thermal insulation and refractory materials in the early days; In the 70s, it began to develop and produce filter aids and catalysts; In the 80s, microporous calcium silicate insulation products were developed, and agricultural application research and development was carried out. Since the 90s of the 20th century, diatomite, as a new environmentally friendly material, has seen an increasing market demand, attracting a large number of scientific research units and enterprises to conduct in-depth research and product research and development, and the concentration trend of diatomite industry has gradually emerged. At present, there are two provincial-level diatomite parks, namely Linjiang Diatomite Industrial Concentration Zone and Changbai County Badaogou Diatomite Characteristic Industrial Park. At present, Jilin Baishan has initially formed a diatomite product system with four categories of products: filter materials, functional fillers, ecological building materials and carrier materials. Among them, the leading product of filter materials, filter aids, account for more than 90% of the national market share; The annual output of functional fillers, such as rubber reinforcing agents, plastic additives, papermaking additives, lightweight paper fillers, feed additives, matting agents, cosmetics and toothpaste fillers, exceeds 50,000 tons; Ecological building materials, such as diatom floor boards, floor tiles, paints, wallpapers, tiles, etc., have been produced on a large scale and have good development prospects; Carrier materials, such as catalyst carriers, nano titanium dioxide carriers, fertilizers and pesticide carriers, etc., have the characteristics of slow release, environmental protection, and non-soil compaction, and have broad market prospects.

3. Development prospects of diatomite industry

Diatomite is a mineral composed of diatom fossils. Due to its unique structure and properties, it is widely used in construction, environmental protection, chemical industry and other fields. With the continuous development of science and technology and people's attention to environmental protection, the future development prospects of diatomite are very broad.

First of all, diatomite has good sound absorption and sound insulation properties, so it is widely used in the field of construction. Building materials such as diatomite wallpaper and diatom mud can effectively absorb indoor noise and improve living comfort. In addition, diatomite also has the functions of regulating indoor humidity and absorbing ozone, so it is widely used in green buildings. With the continuous improvement of people's attention to building environmental protection and health, the market demand for diatomite building materials will also continue to grow.

Secondly, diatomite also has a wide range of applications in the field of environmental protection. Diatomite filters can be used to treat harmful substances in sewage and air, and play an important role in improving water quality and air quality. In addition, diatomite can also be used to make environmentally friendly materials, such as diatom mud, etc., which has the effect of reducing carbon dioxide emissions and saving energy and reducing emissions. With the continuous strengthening of environmental protection policies, the application prospect of diatomite in the field of environmental protection will also be broader.

According to relevant data, the global diatomite market size is expected to reach 4 billion to 5 billion US dollars by 2025, with the building materials and environmental protection materials market dominating. The market size of the domestic diatomite is also expanding year by year, and it is expected to reach more than 10 billion yuan by 2025.

1.1.3 Technical analysis

In the wastewater treatment industry, the pore structure and purity of diatomite directly determine its effectiveness in eliminating pollutants. In order to effectively improve the treatment effect of diatomite, the diatomaceous soil can be modified and purified. At present, there are methods with good purification effect, such as roasting, pickling, comprehensive and scrubbing. Modification methods include roasting modification, surface modification, etc.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The “14th Five-Year Plan for the Development of Metallurgical Building Materials Industry” proposes that the metallurgical building materials and new materials industry is an important basic industry of the national economy, and accelerates the collaborative innovation and high-quality development of the metallurgy, building materials and new materials industry around the industrial chain, supply chain and value chain.

“The Notice of the People's Government of Jilin Province on Printing and Distributing the Implementation Plan for Carbon Peaking in Jilin Province” proposes to support the development of characteristic non-metallic mineral industries such as diatomite, wollastonite, graphite, and illite.

The “Outline of the 14th Five-Year Plan for National Economic and Social Development of Changbai Korean Autonomous County and the Long-Range Objectives for the Year 2035” proposes to further expand the production capacity of medium and low-grade diatomite beneficiation and comprehensive utilization by relying on the diatomite mineral foundation with the largest reserves, the best quality and the unique nature of diatomite in Asia, and the Badaogou Diatomite Characteristic Industrial Park as the core carrier. Intensify the development of diatomite, focus on supporting Changfu Yuantong, Dahua and other enterprises in new technologies and new process transformation, focusing on filter aids, functional fillers, environmental protection functional materials, thermal insulation and energy-saving materials, diatomite interior wall decoration and decoration materials, catalyst carriers and new composite functional materials and other application fields, promote the construction of diatomite product production lines, optimize and upgrade diatomite deep processing products, extend the diatomite processing industry chain, create a diatomite industrial cluster integrating resource extraction, processing, trade, service and research and development, accelerate the construction of the 10 billion diatom valley project and cultivate well-known brands in Changbai.

(2) Resource advantages

Hydropower Resources: The area of the boundary river in Changbai County is 2,497.6 square kilometers, the area of inland rivers is 5,761 square kilometers, the total resources are 1.148 billion cubic meters, and the actual water utilization is 270 million cubic meters. The theoretical reserves of hydropower resources are 230,000 kilowatts, and the planned installed capacity is 162,300 kilowatts, of which: The main stream of the Yalu River is 127,000 kilowatts, and it is suitable for the development and construction of 7 power stations by China, with a planned installed capacity of 58,300 kilowatts; The theoretical reserves of inland rivers are 102,800 kilowatts, and 51 power stations are planned to be built, with an installed capacity of 84,486 kilowatts. 28 power stations have been built, with an installed capacity of 54,700 kilowatts (accounting for 64.74% of the planned installed capacity of inland rivers).

Mineral resources: Changbai County is the world's second and China's first high-grade diatomite resource enrichment, with a total proven diatomite resource of 240 million tons, ranking first in Asia in terms of reserves and grade. Diatomite is mainly distributed in the section from Badaogou to Xinbeigang, with a total proven resource of 200 million tons and prospective reserves of more than 800 million tons. Among the recoverable reserves, the first-class ore (SiO2≥85%) accounts for about one-third of the recoverable reserves.

Land resources: Changbai County has a total area of 249,760 hectares, a population density of 30 people per square kilometer, and a per capita area of 1.22 hectares (excluding water area). The arable land area of the county is 14,926.66 hectares, the forest area is 220,880 hectares, the grassland area is 6,840 hectares, the garden area is 1,006.66 hectares, the water area is 2,580 hectares, and the other land area is 2,973.33 hectares. Changbai Mountain Nature Reserve covers an area of 16,386.66 hectares in the county, accounting for 6.6% of the total area.

(3) Industrial advantages

Baishan City uses the high-quality quartz sand and diatomite resources in the region to accelerate the agglomeration and development of emerging industries such as photovoltaic glass, diatomite, and pumped storage. Implement strategic cooperation with CNBM and Dadi Yuantong, integrate diatomite resources, promote the application field of diatomite to expand to pharmaceutical-grade high-end filter materials, bio-organic fertilizers, food-grade additives, diatomaceous aldehyde plates and other fields, and build a world-class diatomaceous earth industry chain demonstration area. Relying on the Changbai Badaogou Diatomite Characteristic Park and the Linjiang Liudaogou Diatomite Concentration Area (Park), we will focus on the development of diatomite multi-functional environmental protection plates, profiles, diatomite concentrate loaded nano titanium dioxide composite photocatalytic materials, diatomite synthetic modified asphalt, diatomite concentrate to produce a new generation of environmentally friendly wall materials, coatings and home decoration materials, lightweight textbooks and paper special fillers and other new materials of diatomite series products, by promoting the construction of industrial parks, giving full play to the industrial agglomeration effect, and accelerating the innovation and application breakthrough and industrialization process of diatomite. At present, there are 31 diatomite production and processing enterprises in the city, forming a new diatomaceous earth product system with four categories, namely filter materials, functional fillers, ecological building materials and carrier materials, 35 varieties and 138 products.

(4) Talent advantages

63,800 professional and technical personnel in Baishan City; 13,000 highly skilled talents, including 39 young and middle-aged experts with outstanding contributions; There are 13 top innovative talents, and a talent team has begun to take shape, with a relatively complete range of categories and gradually increasing overall strength. Changbaishan Vocational and Technical College is a public ordinary university with higher education enrollment qualifications approved by the Jilin Provincial Government and recorded by the national education. The college is a multi-level and multi-category teaching higher vocational college that focuses on higher education, takes into account secondary vocational education, and carries out social training and vocational skills certification education at the same time. The college has 18 higher vocational majors for national enrollment and 12 secondary vocational majors for provincial enrollment. The training center of the college has more than 30 projects of skills training and vocational qualification education in six categories, with an annual training capacity of 5,000 people.

(5) Location advantages

Changbai County is the frontier window of Jilin Province's opening to the outside world, and is also an important node of China's “Belt and Road” Northeast Asian Economic Circle, with 1 national first-class border port and 3 temporary cargo channels, and perfect port infrastructure. Over the years, it has been rated as a national cultural advanced county, a national civilized county, a “national double-support model county” for five consecutive times, the national model collective of national unity and progress for six times and other honorary titles.

1.2 Contents and scale of project construction

1.2.1 Scale of Construction

After the completion of the project, the annual output of diatomite sewage purification materials will be 20,000 tons; An annual output of 30,000 tons of diatomite rubber reinforcing agent fillers and pigments; Annual output of 5,000 tons of diatomaceous earth catalyst carrier materials; An annual output of 200,000 m³ lightweight wall insulation materials; Annual output of 10,000 tons of diatomaceous earth coatings.

1.2.2 Contents of Construction

With an area of 27,100 square meters and a construction area of 35,230 square meters, the project is planned to purchase production equipment and construct production workshops, warehouses and comprehensive buildings and other facilities.

1.3 Total investment of the project and capital raising

1.3.1 Total investment of the project

The total investment of this project is 230 million yuan, including construction investment of 180 million yuan and current funds of 50 million yuan.

1.3.2 Capital raising

Self-funded by enterprises

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales income will be 230 million yuan, its profit will be 35 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 2 years) and its investment profit rate will be 15.22%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The project makes full use of the diatomite mineral resources that Baishan City has with significant advantages in China and even the world, produces diatomite deep-processing products and functional materials with high added value and good benefits, and at the same time efficiently and comprehensively utilizes the tailings and other solid wastes in the production process, which is of great significance for the development of local economy and social progress.

1.5 Cooperative way

Joint venture, cooperation, sole proprietorship, other ways are negotiable.

1.6 What to be invested by the foreign party

Funds, other ways are negotiable.

1.7 Construction site of the project

Baishan City Changbai Korean Autonomous County.

1.8 Progress of the project

We are attracting foreign investment.

2. Introduction to the Partner

2.1 Basic information

Name: Changbai Korean Autonomous County Bureau of Commerce

Address: No. 64, Changbai Street, Changbai Korean Autonomous County

2.2 Overview

Baishan City is a prefecture-level city under the jurisdiction of Jilin Province, located on the west side of Changbai Mountain, adjacent to Yanbian Korean Autonomous Prefecture in the east, Tonghua City in the west, Jilin City in the north, and the Democratic People's Republic of Korea across the Yalu River in the south, located in the hinterland of Changbai Mountain, Longgang Mountain Range and Laoling Mountain Range run diagonally through the whole territory, belonging to the north temperate continental monsoon climate, with a total area of 17,505 square kilometers. The city has jurisdiction over 2 districts, 2 counties, 1 autonomous county, and 1 hosted county-level city. As of the end of 2023, the city has a population of 895,900.

Changbai County is located in the southeast of Jilin Province, at the southern foot of the main peak of Changbai Mountain, and at the source of the Yalu River. It is known as “the first county under Changbai Mountain and the first city at the source of the Yalu River”. The county covers an area of 2,505.96 square kilometers, and has jurisdiction over 7 towns, 1 township, 77 administrative villages, 1 provincial border economic cooperation zone, and 1 provincial diatomaceous earth characteristic industrial park. Changbai Korean Autonomous County faces one city and five counties in Liangjiang Province of the Democratic People's Republic of Korea across the river, and is a typical border ethnic minority area and a key port border trade city, and is the frontier position of China's northeast region in foreign development and opening up and an important window for cooperation in the central border region of China and North Korea. Over the years, it has been rated as a national cultural advanced county, a national civilized county, a “national double-support model county” for five consecutive times, the national model collective of national unity and progress for six times and other honorary titles.

In recent years, Changbai County has firmly grasped the development opportunity of the Eastern Green Transformation and Development Zone and the construction of the provincial-level border economic cooperation zone, with green transformation and development as the main line, constantly adjusting the industrial structure, accelerating transformation and upgrading, and new industries, new formats, new technologies and new business models are constantly emerging. Diatomaceous earth processing, eco-tourism, characteristic agriculture, border trade, modern service industry and other green industries have been initially formed, the industrial development foundation has been continuously consolidated, the agglomeration capacity has been significantly enhanced, and five characteristic industrial parks, namely the China Changbai-North Korea Huishan Cross-border Economic Cooperation Zone, Changbai Import and Export Processing Functional Park, Changbai Characteristic Tourism (Cross-border) Leisure Functional Park, Changbai Green Health Industry Functional Park and Changbai Financial and Trade Service Zone, will be gradually built.

2.3 Contact method

Contact unit: Baishan Municipal Bureau of Commerce

Contact person: Zhu Yuze

Tel: +86-439-3367020    

   +86-15844990231