Agro-chemicals firm Coromandel International on Wednesday announced the acquisition of an additional 8.82 per cent equity stake in Senegal-based rock phosphate mining company BMCC through its wholly-owned subsidiary.
With this, the company’s overall shareholding in Baobab Mining and Chemicals Corporation (BMCC) will increase to 53.8 per cent.
“Coromandel will invest $3.84 million (Rs 32 core) in BMCC, besides a loan infusion of $6.5 million (Rs 54 crore) to fund expansion projects and meet working capital requirements,” Coromandel International said in a statement.
Rock phosphate is a critical raw material for manufacturing Phosphoric Acid, an intermediate used for Phosphatic fertiliser production.
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BMCC, incorporated in 2011, has a renewable exploitation permit for processing phosphate ore and Coromandel acquired a 45 per cent stake in September 2022. The company has since stabilised mining operations and is currently commissioning a fixed processing plant to optimise rock production.
Commenting on the investment, Coromandel International Managing Director and CEO S Sankarasubramanian said, “With India importing the majority of its rock requirement, investment in rock phosphate mines will be critical for attaining long-term supply security for its phosphate fertiliser production”.
The Senegal rock is currently being blended at Coromandel’s Visakhapatnam unit, along with other rock sources, thereby providing us operational flexibility, he said.
Over the past two years, the company has taken various initiatives to optimise rock production at BMCC and the increased throughput will support in securing rock phosphate for the upcoming Phosphoric Acid plant at the company’s Kakinada Unit.
“The additional stake in BMCC is strategically important for capturing value chain and building self-sufficiency in our operations,” Sankarasubramanian noted.
Coromandel International, which specialises in crop protection products, fertilisers, and speciality nutrients, has 18 manufacturing facilities across the country. It clocked a turnover of Rs 22,290 crores during 2023-24.
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First Published: Sep 25 2024 | 7:40 PM IST
