EuroChem to invest $4.2 bln in mining assets, fertilizer production by 2020
MOSCOW. Oct 4 (Interfax) - EuroChem , a major Russian fertilizer producer, plans to invest $2.9 billion in the development of mining assets and $1.3 billion in mineral fertilizer production assets in the period from 2016 through 2020, the company said in a memo for a Eurobond offering.
In the mining business, $2.8 billion will be invested in potash projects, including $1.2 billion in Volgakaliy in Volgograd Region and $1.6 billion in Usolsky Potash in Perm Territory.
The company will also spend $176 million to expand capacity and replace equipment at the Kovdorsky GOK mining and processing complex.
EuroChem plans to spend $679 million on the construction of an ammonia plant in Kingisepp by 2020. About $298 million has already been invested in this project.
The company plans to spend $175 million on expanding and maintaining capacity at Nevinnomyssky Azot, including a project to set up production of potassium nitrate, and $131 million on Novomoskovsky Azot, including updating equipment for production of weak nitric acid.
EuroChem also plans to invest $88 million in Phosphorite, $76 million in Belorechenskie Mineral Fertilizers, $70 million in Lithuanian plant Lifosa and $48 million in a plant in Antwerp.
The company also plans to invest $49 million in its gas assets.