News

May 14, 2008

India's IFFCO Signs Up For Legend International’s Lady Annie Phosphate Project

By TC Malhotra in New Delhi

The Indian Farmers Fertiliser Cooperative Limited (IFFCO), the country's largest producer and seller of fertilizes, has entered into a long-term off-take and supply agreement with Australia’s Legend International Holdings. The agreement stipulates the delivery of about three million tonnes annually of concentrated rock phosphate from the Lady Annie project in Queensland, Australia.

As yet the possible financing arrangements for putting Lady Annie into production are still up for discussion between Legend and IFFCO, but costs are estimated to be of the order of US$800 million. IFFCO’s move is designed to ensure assured raw material supply at a discount over market prices. Recently fertilizer prices have experienced severe upward pressure in the face of the global boom in agriculture.

The Managing Director of IFFCO, Dr U.S. Awasthi, said that India is currently facing a...