China's SDIC Mining Investment is in advanced negotiations to acquire a significant minority interest in Asia Pacific Potash, reported Bloomberg News, citing people privy to the development.

Asia Pacific Potash holds exploration and production rights in north-east Thailand.

A potential transaction could see SDIC acquiring up to 49% from Italian-Thai Development for at least $400m, the people said.

A deal between the parties is expected to be announced in the coming weeks.

The discussions have not yet concluded, and there is a possibility that they could still fail, according to the sources.

Bloomberg News previously reported that Italian-Thai Development was contemplating the sale of its 90% stake in Asia Pacific Potash, with potential buyers including Chinese entities.

In April 2024, ITD's executive vice-president confirmed that negotiations were in progress and that the company was looking to expedite asset sales to manage its debts.

After posting losses for four consecutive years, ITD announced in March its plans to secure new loans and divest non-core assets to sustain operations and alleviate liquidity issues.

ITD's acquisition of Asia Pacific Potash in 2006 granted it access to premium potash deposits in the Udon Thani province of Thailand.

With an annual production capacity of two million tonnes, the project area covers five sub-districts including the Nongpai, Nonsung and Nong Khonkwang sub-districts of Muang district, together with the Huay Sampad and Na Muang sub-districts of Prachak-sinlapakom district in Udon Thani province.

SDIC Mining is a subsidiary of the State Development and Investment.