DFD moves upstream
Do Fluoride, better known in the industry as DFD or DoFuDo, has launched an investment of RMB 24 million (about US$3.7 million), to take a 40% share in an Inner Mongolia fluorite company.
The takeover target is called Aohan Jingchang Fluorite Company. It holds reserves of fluorspar said to be as much as 1.1 million tonnes.
DFD is already first (or second, depending on who you talk to) in terms of aluminium fluoride production in China, so this gives them an important additional source of raw materials. DFD recently entered a JV with Chalco for the construction of a new ALF3 plant.
It has to be said that Inner Mongolia is a very long way away from Henan, where DFD has its plant, or Liaoning, where the JV is located. With so much primary metal capacity opening up in China’s north-west and West, one wonders whether this investment will be linked with a new plant somewhere in or near Inner Mongolia.