India’s RCF to invest $1.5bn in 2m tonne/year Ghana ferts unit

30 June 2010 09:54  [Source: ICIS news]

MUMBAI (ICIS news)--India’s Rashtriya Chemicals and Fertilisers (RCF) plans to invest $1.5bn (€1.2bn) to set up a 2m tonne/year gas-based urea and ammonium nitrate plant in Ghana, a company source said on Wednesday.

The project would be a three-way joint venture with the Ghanaian government holding 49%, with the rest of the 51% divided between RCF and an unnamed Indian investor, the source added.

The company was planning to send a team of officials to Ghana on 4 July for discussions and to sign the memorandum of understanding (MoU) with the African nation, the source said.

“One main reason for planning the fertilizer unit in Ghana is because there is plentiful natural gas, at cheaper rates than in India,” the source said

The company would soon conduct a joint study with the Ghanaian government to assess the technical, economic, social, environmental and financial feasibility of establishing the plant, the source added.

RCF had also prepared a draft report of the technological and economic feasibility of the capacity expansion of its 1.88m tonnes/year urea line at Thal in Maharashtra state, the source said.

($1 = €0.82)

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By: Priya Jestin

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