PhosAgro board approves $815mn worth of investment projects
The Board of Directors of PhosAgro has approved the progress of the company’s major investment projects. During his report on the company’s development strategy outcomes for 2023 and plans for 2024, PhosAgro’s CEO Mikhail Rybnikov highlighted that the construction and modernization of production capacities at the group’s enterprises are progressing precisely according to the Development Strategy through 2025.
Significant projects in Cherepovets and Volkhov aim to increase the processing of apatite concentrate by more than 400,000 tons. In Cherepovets, efforts continue with the construction of a main conveyor for transporting phosphogypsum and maintaining sulfuric acid production capacities. Meanwhile, in Balakovo, the third stage of development of the production complex is underway, which includes a flexible fertilizer production scheme (MAP/DAF/NPS/NPK) and an increase in gross production volume. The SK-20 sulfuric acid plant reached its design capacity earlier this year, adding an annual sulfuric acid output increase of 350,000 tons. Construction of another sulfuric acid plant, SK-20/1, has begun, with its launch planned for late 2025. There is ongoing technical re-equipment to boost the production of feed-grade monocalcium phosphate by 53,000 tons per year. The target production capacity is expected to be reached in the third quarter of 2024. By 2025, production at the Balakovo plant is projected to grow by almost 1 million tons, reaching a total of 3.5 million tons of fertilizers demanded by Russian farmers.
The development of the mining and beneficiation complexes continues robustly. Construction of a new mine for the Rasvumchorr Plateau deposit is ongoing, and by the end of this year, underground mining at the Gakman Yukspsor section of the Kirovsk mine is scheduled to begin. As part of the ANOF-3 reconstruction project, the capacity of the beneficiation plant will be nearly 12% increased to 10.5 million tons of apatite concentrate annually.
The successful implementation of the long-term development program and significant capital investments — planning to allocate a record 73 billion rubles ($814.68mn) in 2024 — are contributing to achieving new production records. In the first quarter, the company increased its agrochemical product output by nearly 7% to a record 3 million tons. The current growth rates put PhosAgro on track to set a new production record by year-end, potentially surpassing 11.5 million tons.
The Chairman of PhosAgro’s Board of Directors, Viktor Cherepov, congratulated the workforce of the Apatit Mining and Beneficiation Plant on setting a new labor record — the production of the 750-millionth ton of apatite concentrate.
The Board of Directors reviewed the financial results for PhosAgro for the first quarter of 2024, including interim consolidated financial statements according to IFRS. Shareholders will choose from three dividend options (based on 165 rubles per ordinary share, 234 rubles per ordinary share, or 309 rubles per ordinary share) or abstain/vote against each option during the annual general meeting on June 30, 2024, to be held remotely. The record date for dividend eligibility has been set for July 11, 2024.
Reports were heard regarding labor protection, industrial safety, key risk management, cybersecurity for group enterprises, information policy outcomes for 2023 and directions for 2024, and the strategy for information technology. The Board also proposed to appoint JSC “Unikon” as the company’s auditor for 2024 under Russian accounting standards.
During the meeting, a new executive board was elected, with CEO Mikhail Rybnikov, Deputy CEO for Corporate and Legal Affairs Alexey Sirotinko, and Director for Economic Affairs of JSC “Apatit” (PhosAgro Group) Dmitry Morozov included in the new board composition. Approval was also granted for board members to hold positions in other organizations’ management bodies.
