Qinghai to be potash base

China will build its largest potash fertiliser production base in Qinghai in co-operation with Israel.

The State Council approved a feasibility study on construction of the second phase of the Qinghai potash fertiliser project, which would be jointly built by China and Israel, according to Xinhua (the New China News Agency).

The new project, with an annual production capacity of 800,000 tonnes, would ease China's shortage of potash fertiliser which was vital to the growth of crops.

China now produces 160,000 tonnes of potash fertiliser a year.

The project will cost 4.6 billion yuan (about HK$4.27 billion) and will take three years to complete.