Sep. 6, 2010 - In a strategic move to enter the Latin American market, Guangdong Highsun Yongye (Group) Co. Ltd, a commercial property operator which also engages in the production of kaolin, announced that it intends to purchase a 35% stake in Colombia-based kaolin mining firm Kala-mazon for US$4 million. The move would make Highsun Yongye the firm's largest shareholder.
Kala-mazon has an exploration right in a Brazilian kaolin mine through a subsidiary. The mine is reported to have an area of 1,519.45 square kilometers. It has proven reserves of 29 million tons as well as potential reserves totaling 48 million tons of kaolin.
Kaolin is a clay mineral that is essential to the production of porcelain and other types of ceramics. Brazil is one of the world's largest producers of kaolin, along with Bulgaria, France, and China. Analysts in China consider the acquisition an example of the many "non-traditional" areas in which Chinese companies are entering the Latin American market to obtain natural resources.
According to a source, the board of directors of the Shenzhen-based company approved the plan and is only waiting for the final go from Guangdong Province's Department of Foreign and Economic Cooperation.
Kala-mazon has an exploration right in a Brazilian kaolin mine through a subsidiary. The mine is reported to have an area of 1,519.45 square kilometers. It has proven reserves of 29 million tons as well as potential reserves totaling 48 million tons of kaolin.
Kaolin is a clay mineral that is essential to the production of porcelain and other types of ceramics. Brazil is one of the world's largest producers of kaolin, along with Bulgaria, France, and China. Analysts in China consider the acquisition an example of the many "non-traditional" areas in which Chinese companies are entering the Latin American market to obtain natural resources.
According to a source, the board of directors of the Shenzhen-based company approved the plan and is only waiting for the final go from Guangdong Province's Department of Foreign and Economic Cooperation.
