• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, July 17

Indian Farmers Fertiliser Cooperative Ltd (Iffco) will invest around $800 million for undertaking rock phosphate mining in Australia.

The farmers’ co-operative has signed a ‘Principles of Off-take Agreement’ with Legend International Holdings of Australia to undertake joint mining of rock phosphate in Legend’s mines along with an assured three million tonnes (mt) annual offtake by Iffco.

The rock phosphate procured from the Australian company will be utilised as raw material for the co-operative’s di-ammonium phosphate plant in Paradip.

Iffco will invest around $800 million in a phased manner to acquire 45 million shares in the Australian company and will provide technical and logistical support to develop Legend’s mining operations and shipment of its product to India. The Iffco Managing Director, Dr U.S. Awasthi, has joined the board of Legend International, the co-operative said in a release.

Initially, Iffco would acquire 15 million shares in Legend International Holdings. It would also receive options for another 30 million shares to be acquired in a phased manner. The fund would be used to meet capital expenditures related to the project.

According to the agreement signed between Iffco and Legend, the price at which Iffco will buy rock phosphate from the Australian company would be decided based on market benchmark prices for significant volumes of international supply agreements to the Indian buyers. An alternate price mechanism, based on international phosphoric acid price, has also been incorporated, the release added.

More Stories on : Overseas Investments | Minerals | Fertilisers

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Hindustan Copper’s Ghatsila rail network on a modernisation track

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line