According to Bloomberg, OJSC Eurochem intends to get ahead of the potash market leader Uralkali by 2019 thanks to the anticipated launch of two currently developed potash deposits. “We expect both mines to start production by the end of 2017,” said Clark Bailey, Eurochem’s Mining Director, in an interview to the agency. It will take up to two years after that to start exporting potash abroad, said he.
The mines currently under construction, one located at the Verkhnekamskoe deposit in the Perm Krai, the other at the Gremyachinskoe deposit in the Volgograd Oblast, are being built in two stages to yield an annual combined output of 8.3 mn tonnes of potash.
“Our project boasts a lower cost of construction per tonne of potash capacity than is needed to get a return on investment,” said Mr. Bailey. “Considering the fact that we have a port terminal on the Black Sea, we believe that VolgaKaliy, (the subsidiary) that develops the Gremyachinskoe, will be able to offer the product at a very competitive price.” In his words, the subsidiary is well-positioned to send its potash to Europe and Latin America. “Uralkali may have to partially shift its strategy and reconsider its market positions,” said Mr. Bailey.
