MCA Phosphates, the Singapore-based joint venture between Zuari Industries and Japan’s Mitsubishi Corporation, has bought a 30% equity stake in mining company Fosfatos del Pacifico (Fospac) of Peru for US$46.1m, a Zuari Industries release said. Fospac is a subsidiary of Cementos Pacasmayo.
Additionally, the Zuari-Mitsubishi combine has entered into an off-take agreement with Fospac to purchase the entire production of concentrated rock phosphate after meeting local demand, if any, for minimum 20 years.
The Fospac mines project, located in the province of Pieura, has an estimated rock phosphate deposit of 540Mt with an average P2O5 content of 18.5% before beneficiation. The project is expected to have an initial production capacity of 2.5Mta of concentrated rock phosphate of 29.5% P2O5. The project is expected to commence production in 2015.