Coromandel International Limited, a leading agri-solutions company in India, has announced the acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC) in Senegal through its wholly-owned subsidiary, Coromandel Chemicals Limited. This move involves acquiring an extra 8.82% equity stake in BMCC, raising Coromandel’s total ownership to 53.8%. The company will invest USD 3.84 million (INR 32 crores) in BMCC, along with a loan infusion of USD 6.5 million (INR 54 crores) to support expansion projects and working capital needs.
Rock phosphate is essential for producing phosphoric acid, a key intermediate in phosphatic fertilizer manufacturing. BMCC, established in 2011, holds a renewable exploitation permit for processing phosphate ore, and Coromandel initially acquired a 45% stake in September 2022. Since then, BMCC has stabilized its 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: “With India relying heavily on imported rock phosphate, investing in rock phosphate mines is vital for ensuring long-term supply security for phosphate fertilizer production. The rock from Senegal is currently being blended with other sources at Coromandel’s Visakhapatnam unit, providing operational flexibility. Over the past two years, we have implemented several initiatives to optimize rock production at BMCC, and the increased output will support the upcoming phosphoric acid plant at our Kakinada Unit. This additional stake in BMCC is strategically significant for enhancing our value chain and achieving self-sufficiency in our operations.”