Coromandel International Boosts Stake in Senegal's BMCC for Strategic Growth

Coromandel International has acquired an additional 8.82% equity stake in Senegal-based BMCC, raising its total shareholding to 53.8%. This investment includes $3.84 million in equity and a $6.5 million loan for project expansion. This move aims to secure raw materials and enhance operational flexibility for future growth.

In a strategic move, agro-chemicals giant Coromandel International announced on Wednesday the acquisition of an additional 8.82 percent equity stake in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining company in Senegal. The acquisition is made through Coromandel's wholly-owned subsidiary.

With this latest investment of USD 3.84 million and an additional loan infusion of USD 6.5 million, Coromandel International has increased its overall shareholding in BMCC to 53.8 percent. The funds are earmarked for expansion projects and to meet the working capital requirements of the Senegal-based firm.

Coromandel's managing director and CEO, S Sankarasubramanian, highlighted the importance of the investment, noting its role in securing long-term raw material supply for Phosphoric Acid production. The Senegal rock phosphate is currently being blended at Coromandel's Visakhapatnam unit, providing operational flexibility. The company aims to further stabilize operations and enhance rock production through this additional stake, optimizing for its upcoming Phosphoric Acid plant in Kakinada.

(With inputs from agencies.)