INDO EGYPTION FERTILIZER COMPANY SAE

a joint venture of
Indian Farmers Fertiliser Cooperative Ltd., India
and
El Nasr Mining Company , Egypt
May 12006

About IFFCO

Indian Farmers Fertiliser Cooperative Limited (IFFCO)

incorporated as a multistate cooperative society in India is
the largest fertiliser producer in India.
Owned by more than 38000 cooperative socities
representing about 55 million farmers.
Annual Production of 6.4 million tones fertilisers in the year
2005-06.
Annual Sales of 8.2 million tones in the year 2005-06
20% market share of nitrogenous and 25% market share of
phosphatic fertilisers in India.
Annual turnover for the year ending March 2006 is over
US$ 2.2 billion and profit of US$ 107 million
Networth as on 31st March 2006 US$ 790 million

About IFFCO
Major Joint Ventures

Industries Chemique du Senegal (ICS), Senegal

Indian Potash Limited, India
IFFCO-Tokio General Insurance Company Ltd , India
Oman-India Fertiliser Company, Oman
National Commodity and Derivative Exchange
Limited, India
National Collateral Management Services Ltd, India
Godavari Fertilisers and Chemicals Ltd., India

About ENMC

El Nasr Mining Company (ENMC) is the largest

mining company in Egypt under Metallurgical
Industries Holding Company.
ENMC is the main miner, supplier and exporter of
rock phosphate in Egypt.
Owns Rock phosphates mines in eastern and
western Sabaiya deserts besides other minerals all
over Egypt.
Owns Hamerawein port at Red Sea.
Exports about 1.5 million tones of rock phosphate
yearly in addition to supplies in domestic market.
4

Project Highlights

Location : Eastern desert at Sabaiya

near Edfu, Aswan, Egypt adjacent to
Rock Phosphate
mines/ works of
ENMC
Main Product : Phosphoric Acid 1500
tones
per day (P2O5)
Intermediate Product : Sulphuric Acid 4500
tones per day
5

Project Highlights
KEY REQUIREMENTS

Rock Phosphate : About 2 million tones per

year
Sulphur
: 0.5 million tones per year
Production of Phosphoric Acid : 1.0 million
tones (Bulk) per year
Water
: 15000 cubic meters per day
Power
: Captive Generation of
25 MW
6

Project Highlights

Capital Investment
: 325 million
US$
Debt equity ration
70 :30
Shareholding Pattern : IFFCO/Affiliates 76%
ENMC 24%

Project Highlights

Port facility required for import of Sulphur

and Export of Phosphoric Acid

Railway Net work required to be improved

for transportation of Sulphur and
phosphoric Acid from/ to port

Strategic Partnership

ENMC shall supply about 2 million tones of

rock phosphate to the project from its mines
at Sebaiya on long term basis

IFFCO will off-take the entire phosphoric acid

production for exports.

Pre-Project Mile Stones

Conceptulisation for investment : December 2004

First Visit to Egypt
: December 2004
Identification of the JV Partner
: January 2005
MOU with El Nasr Mining Co.
: April,2005
Approval for Investment in : May,2005
Project under Private Free Zone by
General Authority for Investment &
Free Zones (GAFI)
In Principle allocation of Land
: May 2005

10

Pre-Project Mile Stones

Signing of Share Holders Agreement

: October 2005
Incorporation of JV Company
:November 2005
First Board Meeting &
Share Holders Meeting
:November 2005
EIA by CAPSCU, Cairo University :November 2005
Environmental Clearance : January 2006
IFC appointed as finance facilitator
and consultant : February 2006
IFC team visited the site
: March 2006
Testing of Rock Phosphates : March 2006
Established Head Office of the
Company in Cairo
: March 2006

11

Pre-Project Mile Stones

Appointed Ardaman Associates for

Basic design of Gypsum disposal site : March
2006
Geo Technical Study
by by Dr. Fathi
M.Abdrabbo, Alexandria University
: April 2006
Technical Study Report by PDIL
: April 2006
Logistics Study
by CAPSCU,
Cairo University : May 2006
12

Schedule Pre-Project Activities

Social Impact Assessment as per

IFC guide lines by Centre for Environmental
Researchand Studies (CERS)
Cairo University : June 2006
Finalisation of Plant Layout : June 2006
EIA for Crushing Unit of ENMC by
CERS, Cairo University : July 2006
Finalisation of Logistics Plan : June 2006
13

Schedule Pre-Project Activities

Finalisation of consultant for EPC

Contract
: October 2006
Signing of financing agreements :September 06
Financial Closure :September 06
Zero date of the Project : 01/10/1006
Completion of the Project
: 31/09/2009

14

Benefits of the Project to Egypt

Foreign direct investment of about US$ 325 million

Net foreign exchange inflow of over US$ 2 billion
over 20 years of plant operation.
Substantial value addition to Egyptian rock
phosphate reserves.
Placing Egypt on the international Phosphoric acid
Map.
Boost to local economy.
Boost to development of ancilliary industries to
support the plant.
Direct employment of local population
Substantial indirect employment for plant
construction , transportation and support functions.
15

Areas of Concern

Railways/ roadways upgradation to facilitate

transportation of phosphoric acid to the port
and Sulphur from the port to the plant .

Port upgradation for additional solid and

liquid handling requirements.

16

Suggestions

Upgradation of Railways on Fast Track

Upgradation of Ports on Fast Track
Land Acquisiton on Fast Track
Creation of a Pool of Consultants in GAFI in the areas
of Legal, Taxation, Finance, Human Resource etc.
Defining a Nodal Officer in important Ministries for
coordination with GAFI / Investors.
Creation of Business Centre type facilities in GAFI for
new Investors.
Pursuance of Strategic Investors abroad.
Simplification of procedures for establishment of
Offices, Telephone Connections, Work Permits,
Residence Visas etc.
17