Cornerstone laid for Jordan-India venture

SHIDIYA - His Majesty King Abdullah on Saturday laid the cornerstone for a $625 million Jordanian-Indian project for the manufacturing of phosphoric acid that is expected to earn the Kingdom about $300 million in export revenues annually.

The project, located in Maan Governorate about 330 kilometres to the south of the capital, will start commercial operation in 2012, its managers said.

It will create 2,000 jobs in the construction phase and 800 direct jobs and 1,000 indirect jobs when the plant goes operational, according to the owners.

At the ceremony to lay the cornerstone for the project, King Abdullah received a sample of Jordan's first yellow cake manufactured by the Jordan Phosphate Mines Company (JPMC). It will be manufactured at a commercial level soon.

The Shidiya project is owned by the Jordan India Fertilizer Company (JIFCO), which is a joint venture between the JPMC and Indian Farmers Fertilizer Cooperative Ltd. (IFFCO), which is owned by 40,000 farmers' cooperative societies with a membership base of 50 million farmers in India.

The project entails creating a plant for sulfuric acid with a capacity of 4,500 metric tonnes per day (mtpd) and a phosphoric acid plant with a capacity of 1,500 mtpd, in addition to facilities.

"The project is part of a matrix of projects which the JPMC intends to realize by 2013 with investments exceeding $1.3 billion with the aim of modernizing the present fertilizer plants and increasing their output by 350,000 tonnes annually, JPMC Deputy Executive Director Mohammad Bader Khan said at the ceremony.

U.S. Awasthi, deputy chairman of JIFCO and IFFCO's CEO and managing director, said the project was conceived based on the "strong ties" between the JPMC and IFFCO.

"The joint venture is a strategic partnership between the JPMC and IFFCO wherein JPMC will be supplying around two million tonnes of rock phosphate to the project from nearby mines in Jordan, while IFFCO will be receiving a consistent supply of phosphoric acid to meet its needs in India," Awasthi said.

According to Awasthi, IFFCO has a capacity to produce about four million tonnes of urea and four million tonnes DAP/NPK fertilizers per year.

"The project will provide an assured supply of phosphate input to Indian agriculture for sustenance in food grain production," said Awasthi.

Bader Khan, who reviewed the company's plans for expansion and future projects, said these plans include the increase in the output of diammonium phosphate and phosphoric acid at the Fertilizers Industrial Complex in Aqaba. The $90 million project, which is still under construction, will be completed by the end of 2011 and will increase production of phosphoric acid annually by 100,000 tonnes and diammonium phosphate fertilizer by 350,000 tonnes per year.

Bader Khan also referred to another project to create a plant for the production of different phosphoric and potash fertilizers near the Wadi Al Abiad Phosphate Mine, to the north of Maan. The $80 million project, which will be operated in partnership with Bahrain, Arab and local investors, is also expected to start production in 2011.

He also highlighted other schemes by the JPMC designed to increase production and improve infrastructure.

Also yesterday, King Abdullah visited the project of the AREVA/Jordanian-French Uranium Mining Company in Swaqa, where he was briefed on the progress of the project for mining uranium, which is currently in its second phase.

The King was briefed on the steps that have been taken to facilitate the beginning of the second phase of the project to explore uranium.

At a meeting with experts from French nuclear manufacturer, AREVA and the Jordan Atomic Energy Commission (JAEC), the King stressed his commitment for the development of clean and renewable energy projects using the best and most advanced technologies.

The Monarch also visited a work site, looked at extracted samples and was briefed on measures taken to implement the project.

JAEC Chairman Khaled Toukan reiterated that initial indicators during the first explorations were positive and encouraging so that Jordan could become one of the first producers and exporters of uranium.

Launched in September 2008, the project covers an area of 1,469 square kilometres.
The project feasibility studies are expected to be completed by the end of this year. After that, the actual planning to build a uranium extracting mine will begin, Toukan added.

By Mohammad Ghazal