Kirovsk – PhosAgro (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, announces that it has signed an agreement worth over RUB 13.57 billion with CJSC Orica CIS (part of the Australian corporation Orica Limited*, LSE: ORI) for the supply of emulsion explosives to PhosAgro subsidiary Apatit from 2015 to 2024.
The Russian division of Orica won in a competitive bidding process that was part of a project to start using modern, safe emulsion explosives for mining work at Apatit.
The parties agreed that Orica will finance the construction of a modern emulsion explosives production complex with a capacity of 70 thousand tonnes per year at Apatit, which is to be completed by 2015. The facility will utilise ammonium nitrate produced by PhosAgro-Cherepovets, with which the company will sign an agreement governing purchase prices and volumes.
Prior to completion of the new production complex, Orica will supply emulsion explosives to Apatit from other production facilities. By 2014 PhosAgro plans to use emulsion explosives for up to 90% of the underground blasting at Apatit.
PhosAgro CEO Maxim Volkov said: “The technology offered by Orica will enable us to make a major leap forward in the safety of our blasting operations while also improving efficiency.”