Coromandel Intl to raise stake for majority holding in Senegalese rock phosphate miner BMCC 

Agriculture options firm Coromandel Worldwide is buying a further 8.82% fairness stake in Baobab Mining and Chemical compounds Company (BMCC) for $3.84 million, which can take its general shareholding within the Senegal-based rock phosphate miner to 53.8%.

Moreover the funding, of about ₹32 crore, the Murugappa Group agency may also be infusing $6.5 million mortgage (₹54 crore) to fund enlargement initiatives and meet working capital necessities.

Eyeing self sufficiency

The fertiliser maker had in September 2022 acquired 45% stake within the Senegalese agency that holds renewable exploitation allow for processing phosphate ore. BMCC, integrated in 2011, has since stabilised mining operations and at present commissioning mounted processing plant to optimise the rock manufacturing. Rock phosphate is a vital uncooked materials for manufacturing Phosphoric Acid, an intermediate used for Phosphatic fertiliser manufacturing, Coromandel mentioned in a launch on Wednesday.

“With India importing majority of its rock requirement, funding in rock phosphate mines will probably be vital for attaining long run provide safety for its phosphate fertiliser manufacturing. The Senegal rock is at present being blended at Coromandel’s Visakhapatnam unit together with different rock sources thereby offering us operational flexibility,” Managing Director and CEO S. Sankarasubramanian mentioned.

Over the previous two years, Coromandel has taken varied initiatives to optimise rock manufacturing at BMCC. The elevated throughput will assist in securing rock phosphate for the upcoming phosphoric acid plant on the firm’s Kakinada unit. The extra stake in BMCC is strategically essential for capturing worth chain and constructing self-sufficiency in our operations, he mentioned.

Subsidiary Coromandel Chemical compounds Ltd will probably be paying $3.84 million for buy of 44,094 odd shares of BMCC from Baobab Fertilizer Africa.