Murugappa Group company Coromandel International Ltd has announced the acquisition of an additional equity stake in Baobab Mining and Chemicals Corporation (BMCC) in Senegal through its wholly-owned subsidiary, Coromandel Chemicals Ltd. The company will increase its stake by 8.82 per cent, raising its total ownership in BMCC to 53.8 per cent.
Coromandel plans to invest $3.84 million (₹32 crore) in BMCC, alongside a loan infusion of $6.5 million (₹54 crore) aimed at funding expansion projects and addressing working capital needs, according to a statement.
“Over the past two years, we have implemented various initiatives to optimize rock production at BMCC, and the increased throughput will support the upcoming Phosphoric Acid plant at our Kakinada unit,” said S Sankarasubramanian, Managing Director & CEO of Coromandel International Ltd.
BMCC, established in 2011, holds a renewable exploitation permit for processing phosphate ore. Rock phosphate is a key raw material for producing phosphoric acid, an essential intermediate in the manufacturing of phosphatic fertilizers.
Coromandel initially acquired a 45 per cent stake in BMCC in September 2022, and since then, the company has stabilized mining operations and is currently commissioning a fixed processing plant to optimize rock production.
“The Senegalese rock is currently being blended at our Visakhapatnam unit with other rock sources, providing operational flexibility,” he said.