The Gremyachinskoe potash project is a top priority for EuroChem and we currently expect to produce our first potash in 2014, ramping up to full capacity for phase I of 2.3 mmt p.a. by 2015. With the help of this and other potash investments, EuroChem plans to become a top-5 global fertilizer producer, and one of only three companies worldwide that produces fertilizers in all three of the primary nutrient groups (N, P and K). Some of the competitive advantages of the Gremyachinskoe project are:
- Higher nutrient content of ore
- New mines and processing plant will be more efficient and require less personnel than legacy facilities
- Proximity to EuroChem’s Tuapse bulk terminal (approx. 500km)
License details
| License area: | 96.9 km2 located in Volgograd region |
| Depth: | 1,000–1,250 meters |
| License acquired | 2005, via auction process |
| Purchase price | US$ 106m (RUB 3.087bn) |
Reserves and resources
| Russian classification (per Minutes of GKZ as № 2339 of 26.11.2010) | m tonnes |
|---|---|
| Reserves (B+C1+C2) | 1,613 |
| Off-balance reserves (С1+С2) | 0,074 |
| JORC (per independent appraisal’s report as of September 2009) | m tonnes |
| Proven and Probable reserves | 492 |
| Measured and Indicated resources | 1,337 |
Nutrient content of Sylvinite ore
| KCl average content | 39,5% |
| NaCl average content | 54% |
| MgCl average content | 0.2% |
| CaSO4 average content | 6-7% |
Development and Production
Phase I:
- Capacity of 2.3 mmt p.a.
- Production to start in 2014, full capacity to be reached in 2015
- Involves construction of social and logistics infrastructure, cage and skip shafts, and new processing plant
- Total investment estimated at US$ 2.3bn
Phase II:
- Additional capacity of 2.3 mmt p.a. (total capacity doubled to 4.6 mmt p.a.)
- Involves construction of additional skip shaft and expansion of existing processing plant capacity
- Production to start in 2015, full capacity to be reached in 2018
- Total investment estimated at US$ 1.1bn
Phase I plus Phase II:
- Total capacity of 4.6 mmt p.a.
- Total investment estimated at US$ 3.4bn