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Australian corporation Orica and PhosAgro sign a long-term cooperation agreement

18 June 2015
St. Petersburg. 18 June 2015. During the St. Petersburg International Economic Forum, PhosAgro and Australian-based global mining services corporation, Orica, signed a 10-year contract for drilling and blasting works in the open-cut sites of PhosAgro subsidiary Apatit, and the supply of emulsion explosives for underground mining.  

The contract is effective from June 2015 to December 2025, and is valued at RUB 12.5 billion(excl. VAT) for drilling and blasting works. This will mark third phase of cooperation between Orica and Apatit, and includes Orica undertaking all drilling of blast holes on the open-cut sites. Orica will conduct the drilling with use of its own drilling rigs on the Vostochniy mine site, with similar plans for the Tsentralniy pit of the Rasvumchorr site from January 2016.  

The alignment between PhosAgro and Orica started in 2010, with the launch of a programme to introduce emulsion explosives at Apatit. 

The first stage of cooperation was in 2011, with the signing of a contract on the supply of bulk emulsion explosives and lease of equipment used to produce and load explosives in underground sites. As a result, 100% of breakage and 85% of development is done with the use of safer, more effective and cost effective emulsion explosives at Apatit. 

The relationship between the two companies extended to Orica’s construction of an emulsion explosives plant at Apatit’s Vostochniy site and associated blasting works. The plant officially opened on 11 December 2014, with the associated products and emulsion explosives production capacity fully covering the needs of Apatit and third parties.  From 1 March 2015, Orica started performing blasting works in the open pits of Apatit. 

Orica is a globally-recognised leader in the development of new technologies and equipment for mining, production of emulsion explosives and blasting works in both open-cut and underground conditions. 

Orica EMEA Zone Executive Richard Brown said: “The close collaboration between Orica and PhosAgro has made it possible to extend our agreements in drilling and blasting in the Apatit open-cut sites. Our relationship to date and the agreement signed today demonstrate the genuine partnership between the two organizations that is resulting in lasting mutual benefit for both sides. Orica is proud of its strong alliance with PhosAgro and considers Russia an important strategic partner.” 

PhosAgro CEO Andrey Guryev thanked the partners for fruitful cooperation and stated that “use of new technologies, development and purchase of modern equipment and introduction of high-tech procedures aimed at improving safety, higher performance and greater efficiency in our drilling and blasting operations are key priorities for both PhosAgro and our partner Orica.”