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Zuari Industries JV acquires 30% stake in Fospac for $46.12 million

30 Dec 2011 Evaluate

Zuari Industries joint venture (JV) - MCA Phosphates, has acquired 30% stake of Fosfatos del Pacifico S.A., Peru (Fospac), a company listed in the Lima Stock Exchange, Peru, for $46.12 million. Mitsubishi Corporation, a joint venture partner has signed off-take agreement with Fospac, for entire production of phosphate rock. The company has back-to-back off-take agreement with Mistubishi Corporation for 50% of the Fospac production per annum phosphate rock.

The Fospac project has estimated mineralized materials of approximately 540 metric tons of phosphate rock with an average P2O content of 18.5% before beneficiation. It is located in Bayovar area in the province of Pieura, Peru and is expected to have an initial production capacity of 2.5 million metric tons.

MCA Phosphates is a 70:30 joint venture established in Singapore, wherein, Mitsubishi Corporation owns 70% stake and Zuari Industries owns 30% stake in the said JV.

Zuari Industries, part of the K K Birla Group, was incorporated as Zuari Agro Chemicals to manufacture urea and complex fertilizers. The company forayed into various business areas such as cement, furniture, hybrid seeds, engineering consultancy, financial services, and oil tanking through a route of subsidiaries and joint ventures.

Zuari Industries Share Price

271.85 6.10 (2.30%)
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