Uralkali to invest $4.5 bln in expansion by 2020
MOSCOW. March 6 (Interfax) - Uralkali will invest $4.5 billion in expansion by 2020, the potash miner said in a statement.
This includes $3.114 billion in expansion and $1.236 billion in maintenance capex, the company said in a presentation.
Capacity to mine potassium chloride will rise to 14.4 million tonnes as a result. Uralkali plans to mine 10.2 million tonnes in 2015.
The board of directors of the company confirmed investment projects in the framework of the updated strategy until 2020. It will build a new 2.3 million tpa mine in place of the accident-hit Solikamsk-2 mine at a cost of $723 million; and accelerate the implementation of the project to expand capacity by 600,000 tonnes at the Solikamsk-3 mine (the first stage - is the completion of the construction of shaft No. 4) for launch in 2017 at a cost of $135 million.
Uralkali is also planning from 2016 to expand production by 0.8 million tonnes of potash by ramping up capacity at the Beryozniki-4 mine at a cost of $87 million.
Among the confirmed investment projects there is also the construction of the Ust-Yayvinsky mine (2.8 million tonnes by 2020, $1.19 billion) and granulation capacity at Solikamsk-3.
After 2020, the company could boost capacity by a further 2.8 million tonnes to 17.2 million tonnes by delivering its project to develop the Polovodovo section at a cost of $1.9 billion.
The development strategy of the company was reviewed in connection with the accident at the Solikamsk-2 mine, which took place in November 2014. The strategy, which was confirmed in 2013 envisages growth of capacity to approximately 15 million tonnes a year and investments to $2.3 billion.