Coromandel International ups stake in Senegal’s Baobab Mining

26 Sep 2024 , 09:44 AM

Coromandel International Ltd, an agricultural solutions provider, announced on Wednesday (September 25) that it has acquired an additional equity investment in Senegal’s Baobab Mining and Chemicals Corporation (BMCC) through its wholly-owned subsidiary Coromandel Chemicals Ltd.

Coromandel’s additional 8.82% equity position in BMCC brings its total shareholding to 53.8%. Coromandel would invest $3.84 million (₹32 core) in BMCC and provide a loan of $6.5 million (₹54 Crore) to support expansion projects and satisfy working capital needs.

Rock phosphate is an important raw material for the synthesis of phosphoric acid, which is used to make phosphatic fertiliser.

BMCC, founded in 2011, has a renewable exploitation permission for processing phosphate ore, and Coromandel purchased a 45% interest in September 2022. Since then, the company has stabilised its mining operations and is currently completing a stationary processing unit to improve rock production.

Sankarasubramanian, Managing Director and CEO of Coromandel International, stated, “With India importing the majority of its rock requirements, investment in rock phosphate mines will be critical for achieving long-term supply security for its phosphate fertiliser production. The Senegal rock is presently being blended in Coromandel’s Visakhapatnam facility with other rock sources, giving us operational flexibility.”

Coromandel International operates 18 production sites in India, producing a diverse range of fertiliser and crop protection products that are sold through a large network of dealers and its own retail outlets.

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