Qinghai Yanhu Industry (SHE:000792), along with its subsidiaries, plans to set up a consortium to establish a pilot-scale project worth up to 498.1 million yuan, according to a Shenzhen bourse filing on Wednesday.

The project will primarily operate pilot-scale processes for spray drying and dehydrating bischofite, as well as dehydrating ammonium carnallite and potassium carnallite.

Out of the estimated amount, 402.5 million yuan will be used for construction and trial operations. The Chinese potassium fertilizer producer will invest 290.4 million yuan to provide equipment for the project.

The company's shares rose 3% during the morning trade.