Chinese fertilizer producer Sinofert Holdings said on Monday that it will buy a phosphate mining company for 1.38 billion yuan ($218.72 million), looking to tap abundant phosphate reserves and develop its phosphorus chemical business in southwest China.

Sinofert said it would buy the entire equity interest in Xundian Lomon Phosphorus Chemical, which owns phosphate mines in Yunnan province, in a deal funded by internal resources and bank loans.

The fertilizer maker will buy acquire the company from Sichuan Lomon Corp and Tibet Longsheng Investment Management. Trading in shares of Sinofert, suspended on Monday morning, will resume in the afternoon.