CHENNAI: Coromandel International Limited on Wednesday announced the acquisition of additional equity stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal, through its wholly owned subsidiary Coromandel Chemicals Limited.
Coromandel will acquire an additional 8.82 per cent equity stake in BMCC, taking its overall shareholding to 53.8 per cent. Coromandel will invest $3.84 million (Rs 32 cores) in BMCC, besides loan infusion of $ 6.5 million (Rs 54 crores) to fund expansion projects and meet working capital requirements.
Rock phosphate is a critical raw material for manufacturing Phosphoric Acid, an intermediate used for Phosphatic fertiliser production. BMCC, incorporated in 2011, has renewable exploitation permit for processing phosphate ore and Coromandel acquired 45 per cent stake in September 2022. The company has since stabilised mining operations and is currently commissioning fixed processing plant to optimise the rock production.
S Sankarasubramanian, MD-CEO, Coromandel International Limited, said, “With India importing 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. Over the past two years, we have 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 company’s Kakinada Unit. The additional stake in BMCC is strategically important for capturing value chain and building self-sufficiency in our operations.”