MUMBAI, March 30: Gujarat State Fertilizers & Chemicals Ltd (GSFC) is exploring the possibility of setting up a consortium with the West Asia-based trading company Trans Fert and the Rajasthan State Mining Corporation to pick up a stake in Togo (rock phosphate) mines located in West Africa.The government of West Africa has decided to privatise its rock phosphate mines by disinvesting up to 40 per cent in Togo Mines. GSFC is keen on participating in the consortium to bid for the stake in Togo Mines. The total investment for picking up the stake is close to $13 million. However, talks are at a preliminary stage. Earlier, Rashtriya Chemicals & Fertilizers (RCF) had initiated talks with the Government Corporation of Togo to set up a Rs 400-crore di-ammonium phosphate (DAP) project. However, RCF has shelved this project. According to GSFC managing director CJ Jose, the company is willing to invest up to $6-7 million (between Rs 20 crore and Rs 30 crore) in the proposal, which is still at a preliminary stage.The balance will be invested by Trans Fert and Rajasthan State Mining Corporation, if the consortium is formed. The proposal will be beneficial to GSFC, as it will be in a commanding position to import phosphoric acid at a cheaper rate. This will insulate the fertiliser major from any wide fluctuation in the international market. GSFC could also start trading in phosphoric acid in the domestic market.
The total capacity of the Togo mines is around 3 million tonnes per annum of rock phosphate. Roughly, three tonnes of rock phosphate is required to produce one tonne of phosphoric acid. GSFC posted a turnover and net profit of Rs 1,129 crore and Rs 84.79 crore during the first half of 1997-98. It is a major urea and DAP producer in the country. Besides fertilisers, it is also engaged in the manufacture of melamine, ammonium sulphate and caprolactum.
It has lined up expansion plans of around Rs 650 crore for the next three years which will be financed by internal accruals and debt. It would involve anadditional 6 lakh tpa capacity of di-ammonium phosphate at Sikka, upgradation of the existing ammonia plants, a third urea plant and melamine expansion at Baroda.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
