Moscow – PhosAgro, a leading global producer of phosphate-based fertilizers, announced a significant increase in production for the first half of 2024. The Board of Directors highlighted this progress during their recent meeting.
According to PhosAgro CEO Mikhail Rybnikov, the company has achieved notable growth, driven by a substantial investment program expected to exceed RUB 73 billion this year.
“We’ve made substantial advancements in both production and sales during the first half of 2024,” Rybnikov reported. “Agrochemical production increased by 3.6% to 5.9 million tonnes, and we anticipate surpassing 11.5 million tonnes by year-end.”
PhosAgro is also advancing its 2025 development strategy, focusing on upgrading existing facilities and constructing new ones. Key projects include:
- Increasing phosphate rock processing by over 400,000 tonnes at the Cherepovets and Volkhov facilities. A new project at Cherepovets aims to boost aluminium fluoride production from 75,000 to 96,000 tonnes annually, with increased supplies expected by mid-2026.
- Expanding the Balakovo plant to enhance the production of MAP, DAP, NPS, and NPK fertilizers, with an anticipated rise of nearly 1 million tonnes, reaching 3.5 million tonnes next year. The plant will also start producing diammonium phosphate, complete the phosphogypsum conversion unit, and retrofit a process system to boost monocalcium phosphate output by 53,000 tonnes annually. The SK-20/1 sulphuric acid plant, under construction, will increase sulphuric acid production by 750,000 tonnes per year by late 2025. Additionally, underground mining will commence in the Gakman section of the Kirovsky mine’s Yukspors deposit later this year.
PhosAgro is committed to investing in human resources, having dedicated RUB 6 billion over the past decade to develop a comprehensive training system for specialists. This year, the company has enhanced its partnership with Murmansk Arctic University (MAU) to establish a leading mining engineering school in Apatity. An underground training center, the first of its kind in Russia, will offer practical training for over 500 students annually, using state-of-the-art equipment and realistic mining conditions. The MAU branch in Apatity will also benefit from new laboratories, workshops, and improved student facilities, with a focus on expanding high-demand study areas and increasing student and faculty numbers.
The Board reviewed PhosAgro’s financial results for the first half of 2024 and recommended an extraordinary meeting of shareholders to approve a dividend payment of RUB 117 per ordinary share, with a record date set for September 22, 2024. The extraordinary general meeting will be held on September 11, 2024, via absentee voting.
Additionally, the Board assessed the performance of the CEO and Management Board, reviewed committee activities for Q2 2024, and confirmed the independence of its members. It also approved work plans for the Board and its committees through mid-2025, updated the 2024 budget, and reviewed compliance with insider information regulations and managerial responsibilities.
The Board also considered issues related to occupational health and safety, risk management, international projects, and investor relations. Remuneration for the independent RAS auditor and the work of the Corporate Secretary for 2023 and the first half of 2024 were also addressed.
