IFFCO seals phosphate rock deal with Australians

16 July 2008 14:58  [Source: ICIS news]

MUMBAI (ICIS news)--The Indian Farmers’ Fertilizer Cooperative (IFFCO) has finalised a phosphate rock offtake agreement with Australia’s Legend International Holdings, the firm said on Wednesday.

“The rock phosphate from the agreement would be used in our Paradip and Kandla plants in Orissa and Gujarat respectively and the units will run to full capacity,” a source from the company told ICIS news.

IFFCO signed a heads of agreement with Legend in April 2008 for jointly working on its phosphate deposits with an offtake of about 3m tonnes/year of concentrated phosphate rock, it added.

“Under the arrangement, the price of the rock will be based on market pricing related to significant volumes of international supply agreements to the Indian market,” the fertilizer producer said, adding that an alternate pricing mechanism, based on international phosphoric acid prices had been included.

IFFCO will provide technical, logistic and financial support to LIH in the development of its phosphate mining operations and product shipment to India, it added.

IFFCO will also buy 15m shares in LIH and also receive an options to acquire 30m shares in a phased manner for funding the expenditure related to the project, the firm said.

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By: Aaron Rodrigues
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