09 May 2008 05:56 [Source: ICIS news]
By Bohan Loh
SINGAPORE (ICIS news)--Rashtriya Chemicals and Fertilisers (RCF) plans to build a $1.9bn (€1.2bn) fertilizer complex in Mozambique in joint venture with South Africa’s Industrial Development Corp (IDC), the Indian firm said on Friday.
"The government of Mozambique has presented to us a few locations in Paputo where the plant can be constructed. We are currently looking for the most cost effective spot," said a spokesperson.
RCF expected to sign the Memorandum of Understanding (MoU) with IDC by the end of May 2008, the spokesperson added.
The complex would manufacture ammonia, urea and complex fertilizers and would have an estimated capacity of 2m tonnes/year, the spokesperson said. Construction was expected to begin in mid-2009 and operations could commence by early 2012.
While RCF and IDC would jointly build and operate the project, there were plans to form a consortium with government bodies and corporate entities, the spokesperson added.
"We are trying to discover new gas fields to power the complex. However, the construction of the complex is expected to continue regardless. We will find alternative sources," the spokesperson said when asked about its intention to use possible new gas field discoveries to operate the plant.
The produce would be shared between Mozambique and India’s agricultural sectors.
($1 = €0.65)
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