MUMBAI (Reuters) - Indian minerals producer Ashapura Minechem Ltd. expect its Nigerian ventures to push growth in the first full year after production begins in end-2007, a senior official said.
Ashapura, in partnership with Nigeria's Emo Energy, acquired Barytes Mining and Processing Co. Ltd. for $500,000 and Nigerian Kaolin Ltd. for $275,000, Executive Director Piyush Vora told Reuters in an interview on Friday.
These ventures would add $1.5 million to the company's net profit in 2008/09, he said.
Ashapura expects to post a turnover of about 13 billion rupees in the year to March 2007 and 20 billion rupees in 2008/09.
It reported a consolidated net profit of 783.5 million rupees on a consolidated turnover of 8.55 billion rupees in the year to March 2006.
Ashapura will have a 48 percent stake in the Nigerian joint venture, Vora said. The project cost would be $4-4.5 million, including the cost of acquiring the Nigerian firms.
The acquisitions have been funded by internal accruals and funds raised from qualified institutional buyers, Vora said.
The company is also setting up a mineral processing plant in Belgium in an equal partnership with Amcol International Corp., which already has a 20 percent stake in Ashapura.
This plant, estimated to cost 3-4 million euros, is expected to start production by the end of 2007.
"It would help us export various products from India to be processed and sold in the European market... It would give us a better reach," Vora said.