3 Dec 2009 16:18

Pikalevo cos sign contracts on feedstock deliveries in 2010; nepheline at 620 rubles

MOSCOW. Dec 3 (Interfax) - The companies in the Pikalevo complex have signed contracts on feedstock supplies effective from December 6, 2009 to December 6, 2010, BaselCement spokeswoman Svetlana Andreeva said.

The contracts lower the price of nepheline concentrate delivered by Apatit to 620 rubles per tonne from 850 rubles. The price of belite slurry has been cut to 400 rubles per tonne from 520 rubles and the price of carbonate has been cut to 900 rubles per tonne from 1,050 rubles.

"A price compromise has been found that will enable all the enterprises in the Pikalevo production cycle to operate stably throughout the contract period," she said.

The scheme for PhosAgro deliveries to BaselCement-Pikalevo, Metakhim and Pikalevsky Cement was agreed in August at an Industry and Trade Ministry session. The parties agreed that Apatit would deliver nepheline concentrate to BaselCement-Pikalevo at 850 rubles per tonne until the end of the year and BaselCement would deliver belite slurry and carbonate to Pikalevsky Cement and Metakhim at prices recommended by the Federal Antimonopoly Service, 520 rubles and 1,050 rubles per tonne respectively. However the agreements on feedstock supplies were signed for a two-month period.

Apatit's parent company, PhosAgro, had said the nepheline price was barely half the cost of production, while BaselCement-Pikalevo argued that the actual price of nepheline was substantially lower than the price reflected in Apatit's accounts.