Deepak Fertilisers forms JV in Australia to provide mining services

The company will invest about Rs 160 crore over the next two years

Deepak Fertilisers and Petrochemicals today said it has set up a joint venture firm in Australia with local partners to provide mining services and will invest about Rs 160 crore over the next two years.

Deepak Fertilisers arm Smartchem Technologies Ltd (STL), which manufactures mining chemicals, announced the launch of its overseas venture for mining services in Brisbane, Australia as a part of its forward integration initiative.

"STL has set up Platinum Blasting Services Pty Ltd (Platinum), a joint venture with local Australian partners, who have vast experience in providing value added blasting services and operation expertise to the mining and explosives industries in Australia," Deepak Fertilisers said.

STL will hold 65% while the local partners will hold 35% in the joint venture, it said in a statement.

"Over the next two years, Platinum intends to make an investment of around AUD 28 million, through a mix of debt and equity," the statement said.

The company plans to develop a full service offering including: Technical Ammonium Nitrate (TAN) supplies, storage and logistics, manufacturing of emulsion, blast design and technical support and Down-the-Hole services.

Australia, which is an about 2 million tonnes per annum of expanding TAN market, will offer immense growth potential to the JV firm Platinum.

"With over three and a half decades experience and as globally 5th largest manufacturer of TAN, reaching out to matured global market, especially Australia is a natural and logical forward integration strategy.

"Apart from supplying TAN to this growing market, we intend to create an expertise in providing value added services and be an integral part of the Australian mining industry," Deepak Fertilisers CMD Sailesh Mehta said.