India offers $100m to Togo to enable acquisition of rock phosphate

25 September 2012 08:33  [Source: ICIS news]

KOLKATA (ICIS)--India has lined up a $100m (€770m) financial package including a line of credit for the Togo government to facilitate Indian fertilizer companies’ entry into rock phosphate asset development in the West African nation, a government official said on Tuesday.

“The financial package finalized by an inter-ministerial committee was aimed to give greater leverage to Indian companies in seeking lease of rights or concessions of assets, setting up projects or pricing concessions in rock phosphate assets available in Togo,” the official in Department of Chemicals and Fertilizer told ICIS.

“The department has proposed that to maximize government’s bilateral initiative, joint ventures or consortiums based on private-public partnerships (PPP) between Indian private and government-owned fertilizer producers should be set up for rock phosphate asset acquisition in Togo,” he added.

“The proposed financial package for Togo was similar to that already offered to Ethiopia ($166m), Senegal ($25m) and Mozambique ($45m),” he said.

Given the rising global demand for fertilizer and resulting rush to acquire scarce fertilizer mineral assets, the Indian government proposed to set up a centralized agency to monitor and ensure that several Indian companies do not compete for the same asset overseas.

Existing guidelines applicable to government-owned fertilizer companies will be liberalized to ensure greater flexibility in partnering private companies and faster decision-making in exploring phosphatic mineral assets in Togo, the official said.

The government-owned companies include Rashtriya Chemicals and Fertilizer Limited (RCFL), Indian Farmers’ Fertilizer Co-operative Limited (IFFCO) and Krishak Bharti Co-operative Limited (KRIBHCO).

India is completely dependant on imports to meet domestic demand for di-ammonium phosphate (DAP) fertilizer.

It imported 5.2 million tonnes of rock phosphate per year and 2.2 million tonne of phosphoric acid, the basic raw material for DAP production. during 2010-2011.

During January-June 2012, import of rock phosphate was 2.23 million tonne of which 10% was sourced from Togo, which has estimated reserves of 1bn tonnes of rock phosphate.

($1 = €0.77)

By: Ajoy K Das
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly