The Hindu Business Line : Senegal offers rights for another phosphate mine

Bilateral boost: The Mines and Industry Minister of Senegal, Mr Me Madicke Niang (left) calling on the Minister for Chemicals and Fertilisers, Mr Ram Vilas Paswan, in the Capital on Friday. —

Our Bureau

New Delhi, Jan. 25 The Senegal Government has offered India rights to develop another rock phosphate mine in the country.

“The Senegal Government has said that they were ready to give the Matem Phosphate Mines for development by an Indian company either in the public or the private sector. A technical team of experts will be sent to examine the mine in February and based on their report we will take a call on the issue,” the Minister of Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, said after a meeting with the Senegal’s Mines and Industry Minister, Mr Madicke Niang, here on Friday.

According to him, experts are being sent to take a look at the amount of mineable reserves and also the quality of rock phosphate.

“Once they give us the report we will consider if it is better to get the rock to India or may be convert it into phosphoric acid in Senegal itself,” Mr Paswan added.

Upgrade rail network

Mr Niang is also understood to have sought India’s help to the tune of about $20 million to upgrade the railway network connecting Industries Chimiques Du Senegal’s (ICS) mines with the port.

“We have assured them that we will take it up with the Ministry of External Affairs,” Mr Paswan said.

Mr Paswan also announced that a consortium led by the Indian Farmers’ Fertiliser Cooperative will invest $200 million to revive the ailing phosphoric acid manufacturer ICS to improve availability of phosphoric acid for the domestic companies.

“Both India and Senegal had agreed last month to revive ICS. Under the revival plan, the IFFCO-led consortium will infuse $100 million in equity and provide another $100 million as loan to revive the company,” he said.

The phosphoric acid plant, located in Darou, has an installed annual capacity of 6.6 lakh tonnes, but is currently producing only one lakh tonnes.

“By March 2009, we expect to at least double the production level and by 2009-end we hope that the plant will start operating at full capacity,” he added.

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