nmdc eyes russian phosphate now

http://investorintel.com/potash-phosphate-press/india-eyes-phosphate-projects-russia-secure-supply/

October 21, 2013 (Source: Reuters) – India, one of the world’s biggest consumers of fertilisers, is eyeing several phosphate projects in Russia to secure supplies, two senior industry officials said on Monday.

India is the world’s top importer of the crop nutrient diammonium phosphate (DAP) and accounts for nearly half of annual global shipments of around 16 million tonnes.

Russian fertiliser maker Acron (AKRN.MM) (AKRNq.L) and a partner from India are discussing jointly developing a phosphate project in Russia, according to the agenda prepared for a visit of Prime Minister Manmohan Singh to Russia on October 21.

“We are planning to secure phosphate supplies from Russia on a long-term basis,” said an official with a state-run fertiliser company, who visited Russia last month with other Indian fertiliser company officials to evaluate mines in the north of the country.

Another Indian industry official, who every year leads negotiations with overseas potash and phosphate suppliers, said that no fertiliser company is currently in a position to invest in any large project.

India usually imports more than 7 million tonnes of phosphate-based fertiliser each year, consisting mainly of DAP. The landed cost of DAP in India has fallen to $390 per tonne on a cost-and-freight (CFR) basis, from $520 per tonne in May due to weaker demand. “Considering rising food demand, we need to secure phosphate, so we won’t be hurt whenever there would be a fluctuation in prices. Right now we are highly dependent on imports,” the official added. - See more at: