Xinjiang Huayou Mining is developing the Kuerle fluorite mining project with start-up set for the end of Q2.

Xinjiang Huayou Mining is progressing fast with its Kuerle fluorite mining and acidspar flotation project in Ruoqiang County, Bayingol Mongol Autonomous Prefecture, Xinjiang, China.  The company is conducting tenders for the tailings dam project in the mining area.  The tentative start date for this is 15 February 2025, with the completion date scheduled for 30 June 2025.

Construction began in March 2024 after the company secured final construction permits. This project is anticipated to produce 1.2Mtpy of fluorspar ore, with a flotation plant designed to process 4kt of ore daily. The Kuerle fluorite reserves represent 10% of China's proven fluorite reserves, and preliminary estimates indicate that the mining area contains up to 50Mt of CaF2. The ore will be extracted using underground mining methods, and the mine is projected to have a lifespan of 41 years.

China has been facing fluorspar supply shortages since 2023, prompting the country to boost its imports of metspar, mainly from Mongolia, to satisfy demand. Some of the lower-grade fluorspar has been processed to higher grades to be utilised as feedstock for producing hydrofluoric acid in the country. The shortages have resulted in a significant 70% decline in Chinese acidspar exports, which fell to 55kt in 2024.

The pricing landscape for acidspar underwent notable increases; in November 2024, as prices for acidspar (DLV China) surpassed the US$500/t mark, peaking at US$525/t. The year concluded with prices stabilising at a slightly lower US$514/t in December 2024. Fluorspar prices have steadily risen due to supply constraints, after safety closures which have largely been responsible for the upward pressure.