re: phosphate plays
We know how companies in singapore like to invest in Australia.Someone could be knocking soon
Chennai, May 17 In order to ensure continued raw material supply and offset spiralling prices in the global Markets, fertiliser major Coromandel Fertilisers Ltd (CFL) of the Murugappa group has floated a 50-50 joint venture with Singapore-based Getex Ocean Trades Pte Ltd to explore rock phosphate sources globally.
The joint venture company—Singapore-headquartered Coromandel Getex Phosphates Pte Ltd—will identify rock phosphate mines across the globe initially. Based on the findings, CFL will look into exploring the prospects (rock phosphate) and then formulate a plan to source for its captive purpose in India, said A Vellayan, CFL chairman Murugappa group vice-chairman.
“We have just formed a JV to identify rock phosphate mines across the globe. Getex is the major player in this area (both in identifying and dealing).” Rock phosphate was the basic raw material for phosphoric acid, which in turn was the major content for producing fertilisers, he said. If the endeavour succeeds, the company will use this at its Ennore and Visakhapatnam plants, he added.
Rock phosphate is a critical raw material world over and its prices have gone up sizeably from $60 a tonne to $250 a tonne in the last few years. “We require approximately 1 million tonne annually and have been importing the entire requirement over the years.
It takes months to identify the prospects in the global Markets,” Vellayan said.
According to him, India imports entire requirement of 10 mt annually. Given the increasing demand, the import level of rock phosphate is expected to go sharply in the years to come. “It takes months to identify the prospects in the global Markets,” he said.
It may be recalled that CFL has successfully completed its business assistance agreement with Foskor of South Africa for sourcing raw materials. The company also formed a joint venture with Groupe Chimique Tunisian in Tunisia for the same
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