Coromandel International Increases Shareholding in Senegal-based Rock Phosphate Mining Company BMCC
Coromandel will acquire additional 8.82% stake in BMCC, taking its overall shareholding to 53.8%
Mumbai, September 25th, 2024: Coromandel International Limited (BSE: 506395, NSE: COROMANDEL), India’s leading agri solutions company, today announced 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% equity stake in BMCC, taking its overall shareholding to 53.8%. Coromandel will invest USD 3.84 million (INR 32 cores) in BMCC, besides loan infusion of US$ 6.5 million (INR 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% stake in September 2022. The company has since stabilised mining operations and is currently commissioning fixed processing plant to optimise the rock production.
Commenting on the investment, Mr. S. Sankarasubramanian, Managing Director & 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.”
