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PhosAgro and Orica discuss prospects for strategic partnership

19 July 2018
Moscow – On 19 July 2018, the Chief Executive Officer of PhosAgro, Andrey Guryev, and Orica Group Executive and President for Europe, Middle East and Africa, Tom Schutte, met in Moscow to discuss ongoing cooperation and opportunities to expand the strategic partnership between the two companies in the CIS region. PhosAgro is one of the world’s largest producers of phosphate-based fertilizers, while Orica is the global leader in the production of commercial explosives and innovative blasting systems for the mining, quarrying, oil and gas and construction markets, a leading supplier of sodium cyanide for gold extraction, and a specialist provider of ground support services in mining and tunnelling.
PhosAgro CEO Andrey Guryev noted that the cooperation between Orica and PhosAgro is a very good example of direct investment by foreign corporations in Russia and the kind of partnership that Russian and foreign companies can achieve: “One possible area for the development of further cooperation with Orica is the building of a production line for packaged emulsion explosives at Orica's existing plant near the Vostochny Mine in Kirovsk. In addition, we will explore other promising areas for the development of further mutually beneficial cooperation.”

“We can already see the results of our fruitful cooperation,” said Tom Schutte. “Based on this, we can now consider broadening this cooperation in the field of drilling and blasting operations at Apatit’s open-pit and underground mines in Kirovsk. Russia is a strategic partner for Orica, and we are proud of our strong alliance with our largest customer in this country, PhosAgro.”

Fruitful cooperation between the two industry leaders began in 2010 when the first successful tests of Orica’s emulsion explosives (EE) were carried out at the mines of the Kirovsk branch of Apatit. Relations then advanced to the next level when, at the St Petersburg International Economic Forum in 2015, the two companies agreed to start using Orica technologies in the underground mines in Kirovsk and Orica financed the construction of a factory on the grounds of the Vostochny Mine. At the same time, a contract worth more than RUB 13.5 billion was signed for the supply of emulsion explosives for Kirovsk for the period from 2015 to 2024. 

Orica’s EE production plant opened in 2014. In terms of its product range and performance, it meets the current needs for emulsion explosives at the Kirovsk branch as well as those of several third parties. Delivery of Rock on Ground services commenced in 2015, which to date have delivered significant benefits in the drill and blast cycle with respect to reliability, predictability and safety. Both parties look forward to strengthening their partnership through the application of new technologies such as electronic initiating systems and high-intensity bulk products.

“Every new stage in our cooperation gives us, first and foremost, confidence in the future. Our experience has shown that Orica lives up to its status as a world leader in the field of drill and blast operations. The technology used by the company dramatically increases the level of safety of blast operations while simultaneously increasing their efficiency, and that is the main priority in PhosAgro's production policy,” concluded Andrey Guryev.