Zuari-Mitsubishi JV acquires 30 per cent stake in Peru phosphate firm
30 Dec 2011
MCA Phosphates Pte Ltd, a Singapore-based joint venture between Zuari Industries Limited and Mitsubishi Corporation of Japan, has acquired a 30 per cent stake in Fosfatos del Pacifico SA of Peru, for $46.12 million.
Mitsubishi Corporation, a company listed in the Tokyo Stock Exchange, owns 70 per cent stake and K K Birla Group company Zuari Industries Limited owns 30 per cent stake in MCA Phosphates.
Fosfatos del Pacifico SA's Fospac project has estimated mineralised materials of approximately 540 metric tons of phosphate rock with an average P2O content of 18.5 per cent before beneficiation, Zuari Industries said in a filing with the Bombay Stock Exchange (BSE).
Located in Bayovar area in the province of Pieura, Peru, the project is expected to have an initial production capacity of 2.5 million metric tons. Mitsubishi Corporation has signed offtake agreement with Fosfatos, for the entire production of phosphate rock.
The company has back-to-back offtake agreement with Mistubishi Corporation for 50 per cent of the Fospac production per annum phosphate rock.
Zuari Industries produces a range of complex fertilisers of various grades. Company also manufactures urea for crop use.
The company also markets various agricultural inputs such as insecticides, fungicides, weedicides, micronutrients, speciality fertilisers, compost, seeds and fertilisers.