Coromandel International, India’s leading agri solutions company, has announced the acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal. Through its wholly owned subsidiary Coromandel Chemicals Limited, the company will acquire an additional 8.82% equity stake in BMCC, raising its overall shareholding to 53.8%.
Coromandel will invest USD 3.84 million (INR 32 crores) in BMCC, in addition to a loan infusion of USD 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, which is an intermediate used for phosphatic fertilizer production. BMCC, incorporated in 2011, holds a renewable exploitation permit for processing phosphate ore. Coromandel initially acquired a 45% stake in September 2022. The company has since stabilized mining operations and is currently commissioning a fixed processing plant to optimize rock production.
Mr. S. Sankarasubramanian, Managing Director & CEO of Coromandel International Limited, commented on the investment, stating, “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 phosphatic fertilizer 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 optimize rock production at BMCC and the increased throughput will support in securing rock phosphate for the upcoming phosphoric acid plant at the company’s Kakinada unit. The additional stake in BMCC is strategically important for capturing the value chain and building self-sufficiency in our operations.”
