IFFCO, IPL buy 37% stake in Jordan's largest mining firm for Rs 900 cr

New Delhi: Fertiliser major IFFCO and Indian Potash Ltd (IPL) have acquired 37 percent stake in Jordans largest mining and chemical firm JPMC for about Rs 900 crore.

The shares have been purchased from Kamil Holdings, owned by Brunei Investment Agency, which is the largest shareholder in Jordan Phosphate Mines Company (JPMC).

“IPL and IFFCO have jointly bought 37 percent stake in JPMC for about USD 130 million (nearly Rs 900 crore),” IFFCO Managing Director U S Awasthi told PTI.

The deal will ensure phosphatic reserve security to Indian farmers and help achieve balanced use of fertilisers in the country, he added. India is dependent on imports for phosphatic fertilisers.

Awasthi said IPL – the country’s largest importer of potash fertilisers, has bought about 27 percent stake, while IFFCO through its subsidiary Kisan International Trading (KIT) has purchased around 10 percent in JPMC.

He also mentioned that the Jordanian government has permitted Brunei to offload its stake to Indian companies.

IFFCO already has a joint venture, Jordan India Fertilizer Company (JIFCO), in which it has 52 percent stake, while JPMC holds 48 percent equity in it.

JPMC, one of the largest phosphates firms in the world, produces 7 million tonnes of rock phosphates annually.

IFFCO manufactures and markets various kinds of fertilisers. It had sold 10 million tonnes and produced 7.87 million tonnes of soil nutrients last fiscal. Its turnover stood at Rs 22,597 crore in the 2016-17 fiscal. The cooperative is yet to announce the results for last fiscal.