Coromandel International acquires 45% stake in African mining co

Chennai: Murugappa Group company Coromandel International is acquiring 45% equity stake in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining company based in Senegal, Africa at an investment of $19.6 million (approx Rs 150 crore) and a loan infusion into BMCC of a further $9.7 million (Rs 75 crore).

The acquisition will be done through its wholly owned subsidiary Parry Chemicals, and the transaction is expected to be completed in the second quarter of fiscal year 2022-23. Coromandel International is an agriculture input solution provider and is in the business of Fertilisers, Crop Protection, Bio Products, Speciality Nutrients, Organic Fertilisers and Retail. It operates 3 fertiliser units for manufacturing around 3 million ton of phosphatic fertilisers. BMCC is in the business of mining, production, and sale of Rock Phosphate. BMCC has since stabilized its operations and commenced active production from 2021. This investment will help in strengthening Coromandel’s backward integration and will ensure long term supply security of the key raw material, Coromandel said in a statement. At full capacity, BMCC can meet up to one-third of the company’s rock phosphate requirement, it added. Coromandel International clocked a turnover of Rs19,255 crore during financial year 2021- 22.