JOPH to Build Phosphoric Acid Plant with Indian Farmers Fertilizers in Jordan

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Researched by Industrial Info Resources (Sugar Land, Texas)--In March, Jordan Phosphate Mines Company Limited (AFM:JOPH) (JOPH) (Amman, Jordan) and joint-venture partner Indian Farmers Fertiliser Cooperative Limited (IFFCO) (New Delhi, India) awarded a contract for engineering, procurement and construction management (EPCM) to SNC-Lavalin Incorporated (TSX:SNC) (Toronto, Ontario) to build a phosphoric acid plant that, along with a sulfuric acid production line, is to be in the industrial zone of Eshidiya, Jordan, near JOPH's mine, some 200 kilometers south of Amman and 125 kilometers northeast of the Port of Aqaba. JOPH's phosphate and sulfur mines will serve as the plant's feedstock supply.

Civil-site construction has commenced, and installation of the production lines and utilities is scheduled to begin later in the year. Upon completion in the fourth quarter of 2012, the US$400 million phosphoric acid plant is expected to produce 500,000 tonnes per year of phosphoric acid. The US$225 million sulfuric acid line addition, which will follow the plant's construction schedule, is expected to yield 4,500 tonnes per day of sulfuric acid.

The phosphoric acid and sulfuric acid produced at the Eshidiya plant will be used to produce fertilizers in IFFCO's diammonium phosphate plants, as well as in its nitrogen, phosphorus, and potassium plants. Although JOPH is Jordan's largest fertilizer producer, it holds a 48% stake in the joint venture, and it was agreed that all of the raw acid from the Jordanian plant would be imported to India by IFFCO, which holds a 52% in the venture. IFFCO is looking to export the end products to the world market.

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