Coromandel International acquires 45% of the stock in Senegal’s company BMCC
The government of Senegal said on Wednesday that rock phosphate mining company Baobab Mining and Chemicals Corporation (BMCC), which is based in Senegal, has officially sold 45% of its stock to India’s Coromandel International.
‘As part of the Atma Nirbhar Bharat initiative to help India become self-sufficient in fertilizers, the government has been advising and helping Indian fertilizer companies strengthen their back-end supply chain. India is very dependent on raw materials like rock phosphate and phosphoric acid.’
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‘In a statement, the Fertiliser Ministry said, “Given India’s high dependence on raw materials like rock phosphate and phosphoric acid, the country plans to secure its supplies and protect itself against price increases by expanding its footprint in mineral-rich countries through investments and multi-year import deals.’
Benefits both the side
Fertilizer Minister Mansukh Mandaviya, who was in charge of the event where BMCC representatives gave Coromandel the acceptance letter from the government of Senegal, said that the investment in the rock mines in Senegal would be good for both countries and help to strengthen their friendship.
Mandaviya further said the mining will take place in Senegal, and 10 lakh tonnes (lt) of diammonium phosphate (DAP) and nitrogen-phosphorus-potassium (NPK) will be made in India.
Goals for security
He also said, ‘India is making sure it has a steady supply of raw materials by investing in places with lots of minerals.’ The government has been working with the industry to make investments like these possible so that the country’s fertilizer needs can be met. We are committed to making sure that our farmers have access to fertilizers, and we will keep working to boost domestic production and form partnerships with other countries.
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Arun Alagappan, the executive vice chairman, said that the investment in BMCC will help Coromandel get up to one-third of the rock phosphate it needs and also help it get supplies from different places.
In 2021-22, the country imported 54.62 lt of DAP, which was 12% more than the year before. About 80% of the phosphatic fertilizer the country needs comes from outside. Both this year and last year, the government subsidy for phosphatic fertilizer went up a lot. Even though prices around the world have gone up, the government has kept the retail price of DAP at about ₹1350-1400 per 50 kg bag.