Moscow – The Board of Directors of PJSC PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, has approved the Company’s budget for next year.
PhosAgro CEO Mikhail Rybnikov said: “This budget confirms the Company’s commitment to a long-term development programme aimed at maintaining high growth rates by modernising and expanding production capacities and deepening vertical integration. We plan to make a record amount of capital investment – RUB 73 billion (with capital repairs) – next year as part of our Development Strategy to 2025.
“In particular, we are going to continue developing our ore and raw material base, which includes plans to start underground mining operations late next year in the Gakman section of the Kirovsky mine’s Yuksporr deposit. We also plan to complete the implementation of projects in Cherepovets and Volkhov in 2024 to increase the processing of phosphate rock by 218 thousand and 153 thousand tonnes, respectively.
“The third stage in the development of the production complex in Balakovo is fully under way with the establishment of a flexible arrangement for the production of MAP/DAP/NPS/NPK fertilizers and an increase in gross production volumes. Financing for this stage was nearly doubled to RUB 27 billion. We expect the project to reach target capacity in the first quarter of 2024, increasing the production of feed phosphates by 14% to 443 thousand tonnes per year. We also expect our upgraded SK-20 industrial process system to reach design capacity in the first quarter, expanding the site’s sulphuric acid output by 13% to 3 million tonnes per year.
“I would like to thank our entire workforce for their concerted efforts throughout the year, which, we can already say with confidence, will result in another production record despite the challenges caused by external volatility.”
The meeting also heard reports on occupational health and industrial safety at PhosAgro Group companies. It was noted that there were zero fatal workplace accidents at the Company in 2023.
The Board of Directors also approved a new Tax Strategy, a new Charity and Sponsorship Policy, a work plan and budget for the Company’s Internal Audit Department for 2024, as well as a new UK Modern Slavery Act Transparency Statement.