BELARUS NEWS AND ANALYSIS

DATE:

22/11/2006

EuroChem to invest $1bn to develop Gremyachinskoye potash salt deposit within next 5-6 years

The EuroChem Mineral and Chemical Company OJSC is planning to invest $1 bn in the development of the Gremyachinskoye potash salt deposit (Volgograd Region) within next 5-6 years, the Company says.

The fifth part of the money will be directed to pay services of contracting agencies and equipment suppliers from Belarus. At that, EuroChem confirmed it was ready to coordinate its efforts on export of potash salts with the Belarusian Potassium Company (BKK) in future.

In addition, EuroChem is planning to cooperate with Belarusian companies Grodno Azot, the Gomel Chemicals Plant in the sphere of phosphoric and nitrogen fertilizers.

BKK was founded in 2005 by Belaruskaliy and Uralkaliy on a par basis, for the purpose of export of potassium fertilizers.

The EuroChem Mineral and Chemical Company was founded in 2001. It is the largest fertilizer producer in Russia, one of the top three European and top ten global leaders in this field. The company comprises a wide range of mining and industrial enterprises, as well as transport divisions, and a broad marketing network in different regions of the world with around 30,000 employees. Its manufacturing enterprises are Nevinnomyssky Azot (Stavropol Territory), Novomoskovskaya Stock Company Azot (Tula Region), Kovdorsky Mining-and-Processing Integrated Works (Murmansk Region), Phosphorit Industrial Group (Leningrad Region), EuroChem - Belorechenskie Minudobrenia (Krasnodar Territory) and Lifosa AB (Lithuania).

EuroChem's major shareholder is the Cyprian MCC Holding (99.9%), owned by Andrey Melnichenko and Sergey Popov, members of EuroChem's BOD.

In 2005, EuroChem's consolidated net income under IFRS totaled $330 mln.

Source:

http://www.akm.ru/eng/news/2006/november/22/ns1818217.htm

Google