15 May 2013 20:03 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--Vale has signed a five-year deal with the Indian Farmers Fertilizer Cooperative (IFFCO) to supply the group with rock phosphate, a raw material used in the production of phosphate fertilizers, the Brazilian mining company said on Wednesday.
The rock phosphate will be quarried and shipped to India from the Bayovar mines in the north-western Peruvian province of Piura, Vale said.
The deal is the first long-term sales contract between Vale and an Indian company, the mining firm said. Contractual supply volumes were not disclosed.
Meanwhile, IFFCO said the deal with Vale would guarantee phosphate supply to India, the world’s largest phosphate importer.
The group’s managing director US Awasthi said it would “strengthen our phosphate sourcing for manufacturing of phosphatic fertilizers in India and ensure our farmers the material at good, affordable rates”.
IFFCO, India’s largest fertilizer producer, currently operates two diammonium phosphate (DAP) and nitrogen phosphorous potassium (NPK) plants in the Indian cities of Kandla and Paradeep, with a combined capacity of 4.4m tonnes/year.
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