20 Dec 2010 14:31

Uralkali, Silvinit clinch potash contracts with Acron, Minudobreniya

MOSCOW. Dec 20 (Interfax) - Uralkali and Silvinit have secured long-term contracts to supply muriate of potash (MOP) with Acron and Minudobreniya (Rossosh), Uralkali said in a statement.

The agreements were struck in compliance with rules against discrimination in the access to MOP and will be valid from January 1 of next year to January 1, 2014. In 2011, Uralkali will supply 300 thousand tonnes of MOP to Acron and 150 thousand tonnes to Dorogobuzh. Subject to options, the total amount of supplies could reach 315 thousand tonnes and 157.5 thousand tonnes, respectively.

Silvinit has entered into MOP-supply agreements with Minudobreniya and Acron for the period 2011-2013. According to the contracts, Silvinit will supply 301,5 thousand tonnes of MOP to Minudobrenaya and 16 thousand tonnes of MOP to Acron next year.

This November, the Federal Antimonopoly Service (FAS) disseminated rules for non-discriminatory access to MOP to mineral-fertilizer producers. These stipulate that - from 1 January next year to January 1, 2013 - MOP producers are advised to supply their products to Russian compound-fertilizer producers at the minimum export price, with the price level to be adjusted quarterly. In Q1 2011, subject to a number of discounts, the minimum export price will be around 5,700 rubles per tonne (FCA, net of VAT, unpackaged).

Uralkali announced previously the signing of long-term agreements with Eurochem and PhosAgro. Silvinit also announced signing long-term agreements with UralChem, EuroChem, PhosAgro, and Meleuzovskiye Mineral Fertilizers. Uralkali and Silvinit have thereby signed agreements with all major Russian producers of nitrogen, phosphorous, and potash (NPK) under the rules of non-discriminatory access to MOP.