The agreement on acquisition of 55% of shares in the African Investment Group was signed on 28 August 2013. The contract value is USD 28.85 million, payable in three installments depending on the progress of mining work. The first samples of phosphorite from Senegal have already arrived in Police. Every year, half of the million tons of the mineral used by Police to produce phosphoric acid as well as phosphoric and multicomponent fertilizers is planned to be ultimately supplied by the African mines.

According to the Management Board of the Azoty Group, access to own resources will enable the Policy-based company to save approx. PLN 30 million per year. It will also make supplies independent of the unstable political situation in North Africa, where the major part of the mineral has been supplied from. A similar raw material supply model is used by other major chemical industry companies.

“The investment in deposits marks the beginning of the company’s expansion in the African markets, while Senegal will serve the role of a hub for production and distribution of fertilizers to other African countries. With a view to streamlining the entire process, ships transporting raw materials to Police will take fertilizers for sale in the African market on their way back. We are planning to launch the production of phosphoric acid internally in several years’ time”, informs Krzysztof Jałosiński, President of the Management Board of Grupa Azoty Zakłady Chemiczne Police SA.

At a conference presenting the main objectives of the investment, Witold Orłowski, Chief Economic Adviser to PwC, convinced the participants that the political and economic condition of Senegal is stable and that its currency is linked with the euro by parity.


KZ