An ISL proposed project titled Potash Forming Conditions, Mechanism and Later Evolution at the Cenozoic Residual Basin of Lanping–Simao has been ratified as one constituent research project of a major key project in the 2010 State Basic Research Development Program ("973" Program), Formation Patterns and Forecast of Marine Potash Deposits on the Landmass of China, according to MOST's latest announcement. The RMB 5 million project to be conducted by ISL is a milestone for the institute as well as Qinghai Province in their efforts in the application of "973" projects.

China is a country with severe potassium resources deficiency. The shortage of large solid potash deposits has become a conspicuous factor hampering national economic development, insomuch as the security of national agricultural industry and social stability are being undermined. The governmental order of the Decision on Promoting Geological Work, issued by the State Council in January 2006, stipulates that potash and other mineral resources should be primary subjects of exploration. It further emphasizes that independent innovations should be promoted in deposit formation theories, minerals prospecting methods, and key technologies in the exploration and exploitation of deposits. As such, conducting in-depth researches in the formation patterns and exploration forecast of Chinese potash deposits, promoting innovations in potash forming theories and methods and technologies in mineral prospecting, and building a solid scientific basis for discovering new potash deposits have become an urgent task in China.

The Lanping-Simao Basin is the only paleo-basin with solid potash deposits of commercial significance uncovered in China so far. Its tectonic setting and conspicuous potash facies constitute a halite and potash formation system with strong regional features, ranking itself as the preferred region for conducting studies on the formation mechanisms and preservation conditions of potash deposits in large salt basins and breaking through in prospecting large solid potash deposits.

The project of the Potash Forming Conditions, Mechanism and Later Evolution at the Cenozoic Residual Basin of Lanping-Simao will adopt the Cenozoic regional geological evolution at the Lanping-Simao Basin as the main scenario, and the saliferous strata of the Paleocene series in the basin as the object of study. It will conduct a detailed geological survey based on previous studies and elaborate on the structural control mechanism, the distribution and sedimentary features, as well as the sources, genetic type and formation of potash deposits at the basin in terms of tectonics, mineralogy, lithology and geochemistry, thereby defining the location and strata in favor of potash formation. The implementation of the project will seek to make some innovations in potash formation theories and methods and technologies in prospecting and build a scientific basis for uncovering a new base of potassium resources. Besides, it may also provide important referential information for prospecting potash at the saliferous basins of south Qinghai and the Qiangtang Plateau.

The institute's recent breakthrough in the application of "973" projects is an exact representation of the government's acknowledgement of the efforts of Qinghai scientists in conducting basic researches, which is a significant step in boosting ISL and Qinghai's applied basic researches to an international level.