Phosphate segment – upstream

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Apatit’s Kirovsk Branch mines, beneficiates and processes apatite-nepheline ore into phosphate rock and nepheline concentrate.

Phosphate rock is processed by Apatit in Cherepovets and its branches in Balakovo and Volkhov. Apatit manufactures both phosphate and nitrogen fertilizers. In addition to phosphate-based fertilizers, its Balakovo branch makes feed monocalcium phosphate (MCP), while the Volkhov branch specialises in such complex fertilizer grades as PKS, NPKS and NPK, and industrial phosphates, including sodium tripolyphosphate (STPP).

Upstream

In 2019, Apatit’s Kirovsk branch mined 38.05 mt of apatite-nepheline ore and produced 10.51 mt of phosphate rock, representing an increase of 4.4%, or 0.44 mt, on the previous year and a record high for the past 25 years.

Internal phosphate rock consumption was at 69%, or 7.3 mt, vs 71%, or 7.1 mt, in 2018, while sales to customers in Russia and abroad accounted for 15% and 16%, respectively, vs 11% and 18% a year ago.

Outlook

We expect a number of major investment projects to help us achieve consistent cost reduction in the upstream segment. These embrace efforts to re-equip the main shaft No. 1 and implement an in-pit crushing and conveying (IPCC) system at the Vostochny mine.

We will continue to optimise processing volumes and improve the quality of our low-cost phosphate rock, expecting to increase its output from the current 10.5 mt to over 11 mt.

Production volume, kt
Sales volume, kt
PhosAgro ore reserves as of 1 January 2020
Deposit Balance reserves, kt
(А + В + С1)
Average P2O5
content
Kukisvumchorr 377,662 14.18%
Yukspor 473,361 14.06%
Apatitovy Cirque 96,756 14.03%
Rasvumchorr Plateau 310,454 13.05%
Koashva 587,667 16.88%
Njorkpahk 55,599 13.46%
Yolitovy otrog 134 19.40%
TOTAL 1,898,633 14.77%

The introduction of remote drilling at PhosAgro’s underground mines in the Murmansk Region has brought about a 20% boost in rig efficiency due to shorter downtime between the shifts and significant improvement of occupational safety during the underground works.

Remote underground drilling is the future of mining. An operator can manage several drilling rigs from an above-ground control centre. PhosAgro currently owns ten such rigs, with more to come in the future.

Licences
Mining licence
Kirovsky mine Kukisvumchorr and Yukspor deposits 31 December 2025
Vostochny mine Koashva deposit 31 December 2038
Njorkpahk deposit 31 December 2063
Rasvumchorrsky mine Apatitovy Cirque and Rasvumchorr Plateau deposits 1 January 2024
Tsentralny mine Rasvumchorr Plateau deposit 31 December 2020
Geological survey, exploration and mining licenses
Plot Plateau 14 December 2040
Iyolitovy otrog deposit 1 February 2024