The Nigerian business magnate has begun discreet talks with Togolese authorities to land an exploration permit to extract phosphate ore
Africa’s richest man, Nigerian-born Alhadji Aliko Dangote is said to be planning a move to invest in the Togolese extractive industry sector, notably phosphate ore, where the Dangote group intends to invest as much as $200 million in partnership with Societe Nouvelle des Phosphates du Togo (SNPT), to work together to extend the minerals terminal at Lome port.
Huhuonline.com learnt from Togolese presidential sources that Aliko Dangote met secretly with Togolese President, Faure Gnassingbe last February 4, on his way to Egypt during which he expressed his group’s interest in landing an exploration permit as a prelude to a second phase involving actual extraction of phosphate ore.
To tempt the Togo authorities, Huhuonline.com was told that Aliko Dangote offered them $200 million to develop the phosphates sector and proposed a strategic partnership with Togo’s SNPT company which has been looking for a savior for the phosphate industry more than two years after being formed first from the ashes of the Office Togolais des Phosphates, then of the subsidiary International Fertilizers Group-Togo, Société Nouvelle des Phosphates du Togo (SNPT), headed by the former minister Florent Manganawoé.
Huhuonline.com understands that the quest for a strategic partner for Societe Nouvelle des Phosphates du Togo (SNPT) to exploit Togo’s carbonated phosphates reserves dates back to 2009 and although authorities in Lome have been engaged for long months in exclusive talks with the Australian firm Sultan Corp., nothing has come out of the talks. To which end, sources told Huhuonline.com, the World Bank and International Monetary Fund brought pressure to bear on the Togolese government; forcing Togo to issue a new invitation to tender for the sector last December; opening the door for Dangote.
Huhuonline.com also learnt that Derek Lenartowicz, managing director of the Australian firm Sultan Corp, had hoped to sign a contract for a carbonated phosphate concession in Togo in September last year but the deal fell apart amid the intrigues and maneuvers that involved third parties and brokers.
At one point, Jean Yaovi Degli, the lawyer of Sultan Corporation Ltd disavowed its agent, Argonaut Consulting Group which had been negotiating an exploration license with Phosphate Togo SA. Argonaut, Degli explained, had been jointly set up by Sultan and Argonaut Consulting Group to develop carbonated phosphates resources in Togo. Sultan Corp alleged that a contract was signed on April 1, 2009 prompting Sultan to pay $400,000 to Argonaut which promised, in return, to obtain licenses and concessions within a period of three months. Failure to deliver, the delay was extended to four months and an additional $100,000 was paid to Argonaut as facilitation fees.
But, for want of obtaining the license the deal hit the rocks and Argonaut agreed to refund the money; of which $125,000 has been reimbursed to date, even though Argonaut claims the April 1, 2009 contract had been extended for an indefinite period and, consequently, was still in effect.
In a report submitted to the Togolese government in mid-November, the consultancy Africa Label Group (ALG), working with Snowden Group of South Africa, estimated that investment of over $400 million is needed to kick-start Togo’s phosphate sector and boost phosphate output which has fallen off the cliff in recent years. Between 1970 and 1990, annual production was around 2.2 million tons but has averaged just 500,000 tons in recent years.
