Jordan: The IFFCO/JOPH Joint Venture Goes Ahead

The Jordan-India Fertilizer Company will produce 1,500 tons per day (475,000 tons per annum) of phosphoric acid, a minimum of 70 per cent of which will be exported to India and used as feedstock for IFFCO’s fertilizer operations. The new $671 million plant will use Jordanian phosphate rock from the close Eshidiya mine. The project is expected to consume some two million tonnes rock per annum.

The new plant will be equipped with state-of-the-art technology to convert the steam produced in the manufacturing process into electricity – enough to make the entire factory self-sufficient and for the excess to be sold to the national power grid. The plant will also recycle water.

Jordan India Fertilizer is a joint venture between Indian Farmers Fertilizer Cooperative Ltd., which has 52 percent, and Jordan Phosphate Mines (JOPH) Co., the world’s second-biggest exporter of phosphate rock, with 48 percent.

The project will receive a $125 million loan arranged by the International Financial Corporation (IFC), in addition to $90.1 million IFC B Loan raised from a syndicate of commercial banks and the Montreal-based fund manager Cordiant Capital. The European Investment Bank (EIB) is also providing a parallel loan of $120.4 million.

India uses much less fertilizer per hectare than the average used in the developed economies, which makes its agriculture less productive and makes imperative an increase in fertilizer supply. The demand for phosphate in India has been growing at a compound annual rate of five per cent over the last 15 years and the trend is expected to continue.

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