Coromandel International to acquire additional 8.82% stake in BMCC

Date:09-26-2024

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.

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".