Coromandel International Increases Stake in Baobab Mining to 53.8%

Coromandel International Limited has announced a strategic acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC) located in Senegal through its wholly-owned subsidiary, Coromandel Chemicals Limited. 

This move will see Coromandel acquiring an 8.82% stake in BMCC, which will elevate its total shareholding to 53.8%. The investment entails a commitment of USD 3.84 million (approximately ₹32 crore) alongside a loan infusion of USD 6.5 million (around ₹54 crore) aimed at supporting expansion projects and addressing working capital needs.

BMCC plays a pivotal role in Coromandel’s operations as it specializes in processing rock phosphate, a crucial raw material for manufacturing phosphoric acid, which is an essential intermediate for phosphatic fertilizer production. Established in 2011, BMCC holds a renewable exploitation permit for processing phosphate ore. Coromandel originally acquired a 45% stake in BMCC in September 2022 and has since focused on stabilizing mining operations. The company is currently in the process of commissioning a fixed processing plant to enhance rock production efficiency, further solidifying its position in the phosphate market. 

Sharing his thoughts on the investment, the Managing Director and CEO of Coromandel International, Mr 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. The Senegal rock is currently being blended at Coromandel’s Visakhapatnam unit along with other rock sources thereby providing us operational flexibility.” 

He further added, “Over the past two years, we have taken various initiatives to optimise 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.”

About Coromandel International Limited

Coromandel International Ltd is one of the leading agri solutions providers in India. The company provides a wide range of products and services across the farming value chain. They specialise in crop protein, fertilisers, bio-pesticides, speciality nutrients, organic fertilisers, etc. 

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