INDO EGYPTION FERTILIZER COMPANY SAE

1
INDO EGYPTION FERTILIZER COMPANY SAE

• a joint venture of
• Indian Farmers Fertiliser Cooperative Ltd., India
• and
• El Nasr Mining Company , Egypt
• May 2006

2
About IFFCO

• Indian Farmers Fertiliser Cooperative Limited
  (IFFCO) incorporated as a multistate cooperative
  society in India is the largest fertiliser
  producer in India.
• Owned by more than 38000 cooperative socities
  representing about 55 million farmers.
• Annual Production of 6.4 million tones
  fertilisers in the year 2005-06.
• Annual Sales of 8.2 million tones in the year
  2005-06
• 20 market share of nitrogenous and 25 market
  share of phosphatic fertilisers in India.
• Annual turnover for the year ending March 2006 is
  over
• US 2.2 billion and profit of US 107 million
• Networth as on 31st March 2006 US 790 million

3
About IFFCO

• Major Joint Ventures
• Industries Chemique du Senegal (ICS), Senegal
• Indian Potash Limited, India
• IFFCO-Tokio General Insurance Company Ltd ,
  India
• Oman-India Fertiliser Company, Oman
• National Commodity and Derivative Exchange
  Limited, India
• National Collateral Management Services Ltd,
  India
• Godavari Fertilisers and Chemicals Ltd., India

4
About ENMC

• El Nasr Mining Company (ENMC) is the largest
  mining company in Egypt under Metallurgical
  Industries Holding Company.
• ENMC is the main miner, supplier and exporter of
  rock phosphate in Egypt.
• Owns Rock phosphates mines in eastern and western
  Sabaiya deserts besides other minerals all over
  Egypt.
• Owns Hamerawein port at Red Sea.
• Exports about 1.5 million tones of rock phosphate
  yearly in addition to supplies in domestic market.

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Project Highlights

• Location Eastern desert at Sabaiya near
  Edfu, Aswan, Egypt adjacent to Rock
  Phosphate mines/ works of ENMC
• Main Product Phosphoric Acid 1500 tones
  per day (P2O5)
• Intermediate Product Sulphuric Acid 4500
  tones per day

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Project Highlights

• KEY REQUIREMENTS
• Rock Phosphate About 2 million tones per
  year
• Sulphur 0.5 million tones per year
• Production of Phosphoric Acid 1.0 million
  tones (Bulk) per year
• Water 15000 cubic meters per day
• Power Captive Generation of
  25 MW

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Project Highlights

• Capital Investment 325 million US
• Debt equity ration 70 30
• Shareholding Pattern IFFCO/Affiliates 76
• ENMC 24

8
Project Highlights

• Port facility required for import of Sulphur and
  Export of Phosphoric Acid
• Railway Net work required to be improved for
  transportation of Sulphur and phosphoric Acid
  from/ to port

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Strategic Partnership

• ENMC shall supply about 2 million tones of rock
  phosphate to the project from its mines at
  Sebaiya on long term basis
• IFFCO will off-take the entire phosphoric acid
  production for exports.

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Pre-Project Mile Stones

• Conceptulisation for investment December 2004
• First Visit to Egypt December 2004
• Identification of the JV Partner January 2005
• MOU with El Nasr Mining Co. April,2005
• Approval for Investment in May,2005
• Project under Private Free Zone by
  General
  Authority for Investment
• Free Zones (GAFI)
• In Principle allocation of Land May 2005

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Pre-Project Mile Stones

• Signing of Share Holders Agreement October 2005
• Incorporation of JV Company November 2005
• First Board Meeting
• Share Holders Meeting November 2005
• EIA by CAPSCU, Cairo University November 2005
• Environmental Clearance January 2006
• IFC appointed as finance facilitator
• and consultant February 2006
• IFC team visited the site March 2006
• Testing of Rock Phosphates March 2006
• Established Head Office of the
• Company in Cairo March 2006

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Pre-Project Mile Stones

• Appointed Ardaman Associates for
• Basic design of Gypsum disposal site March
  2006
• Geo Technical Study by by Dr. Fathi
• M.Abdrabbo, Alexandria University April 2006
• Technical Study Report by PDIL April 2006
• Logistics Study by CAPSCU,
• Cairo University May 2006

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Schedule Pre-Project Activities

• Social Impact Assessment as per
• IFC guide lines by Centre for Environmental
  Researchand Studies (CERS)
• Cairo University June 2006
• Finalisation of Plant Layout June 2006
• EIA for Crushing Unit of ENMC by
• CERS, Cairo University July 2006
• Finalisation of Logistics Plan June 2006

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Schedule Pre-Project Activities

• Finalisation of consultant for EPC
• Contract October 2006
• Signing of financing agreements September 06
• Financial Closure September 06
• Zero date of the Project 01/10/1006
• Completion of the Project 31/09/2009

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Benefits of the Project to Egypt

• Foreign direct investment of about US 325
  million
• Net foreign exchange inflow of over US 2 billion
  over 20 years of plant operation.
• Substantial value addition to Egyptian rock
  phosphate reserves.
• Placing Egypt on the international Phosphoric
  acid Map.
• Boost to local economy.
• Boost to development of ancilliary industries to
  support the plant.
• Direct employment of local population
• Substantial indirect employment for plant
  construction , transportation and support
  functions.

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Areas of Concern

• Railways/ roadways upgradation to facilitate
  transportation of phosphoric acid to the port and
  Sulphur from the port to the plant .
• Port upgradation for additional solid and liquid
  handling requirements.

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Suggestions

• Upgradation of Railways on Fast Track
• Upgradation of Ports on Fast Track
• Land Acquisiton on Fast Track
• Creation of a Pool of Consultants in GAFI in the
  areas of Legal, Taxation, Finance, Human Resource
  etc.
• Defining a Nodal Officer in important Ministries
  for coordination with GAFI / Investors.
• Creation of Business Centre type facilities in
  GAFI for new Investors.
• Pursuance of Strategic Investors abroad.
• Simplification of procedures for establishment of
  Offices, Telephone Connections, Work Permits,
  Residence Visas etc.