EuroChem to invest another $1.4-$2 bln in potash projects before start of production in 2017
MOSCOW. Aug 18 (Interfax) - EuroChem (MOEX" EVHM) is planning to invest another $1.4 billion-$2 billion in potash projects before the start of potash production, which is planned for the end of 2017, the company's CFO, Andrei Ilin, said during a conference call.
As at August, EuroChem had invested $2.9 billion in potash projects. "Before the start of production, we will need to spend $700 million-$1 billion on VolgaKali, on Usolsky, I think, about the same amount," Ilin said.
He said that total investments in both projects are being estimated at $7 billion-$8 billion.
In addition, EuroChem is currently developing two large potash salt fields in Russia within the framework of the implementation of the Gremyachinskoye [operator - EuroChem-VolgaKali] and the Verkhnekamskoye [operator - EuroChem Usosky potash plant] potash projects. The capacity of the first stage of VolgaKali is 2.3 million tonnes, the second stage is 1.4 million tonnes. The Usolsky potash plant project also will be implemented in two stages of 2.3 million tonnes each.
EuroChem said that in August the sinking of skip shaft N1 at Gremyachinskoye field will be complete. At the start of August, skip shaft N1 will be deepened to 998 meters, the penetration reached the upper potassium salt deposit. Skip shaft N2 was lengthened to 653 meters, and the depth of the cage shaft reached 788 meters.
"At our potash project in Russia's Ural region [at the Verkhnekamskoye field], we finished equipping the cage shaft and will begin installing the permanent headframe next quarter. In parallel, we continued with the equipping of the other shaft (skip #1), this includes the construction and installation of the shaft's fixed guide systems, hoists and maintenance platform," EuroChem said in a statement. "Significant progress was made with the thickeners and in July, a major contract was awarded for the construction of the main beneficiation mill building," the company said.
