PhosAgro produces some of the safest phosphate-based fertilizers in the world thanks to the exceptionally low levels of cadmium and other harmful impurities in the raw materials we mine at Apatit on the Kola Peninsula. Our aim is to bring our crop nutrient solutions closer to our customers in priority markets by establishing our own sales offices in these markets. We already have a presence in our three priority export markets of Latin America, Europe and Asia, and this has helped us to speak directly with our customers about what they want, to react faster to changes in demand, to gain a better understanding of the local markets and to promote the unique quality of the phosphate-based fertilizers we produce.
We increased our production capacity from 5.0 million tonnes in 2011 to 7.6 million tonnes in 2016, which represents a CAGR of 8.7%. This was achieved primarily through investments in modernisation and debottlenecking of existing capacities to expand our production of value-added fertilizers. With the launch of our new 760 ths tonne/year ammonia line and 500 ths tonne/year granulated urea line on track for 2017, we aim to continue to increase our production capacity, with significantly enhanced self-sufficiency.
Upstream: we increased the share of underground mining to 74% of total apatite-nepheline ore extraction at Apatit in 2016, following the launch of Main Shaft No 2 at the Kirovsky mine, which increased extraction capacity to 16 million tonnes of ore per year.
Downstream: new, leading-edge ammonia and granulated urea capacities are at the heart of our downstream efficiency efforts. These new and efficient production facilities will use the latest technologies to strengthen our low cash-cost position and will help to minimize PhosAgro’s environmental impact as we grow our total output.
Logistics: after its first full year of operations, the Smart Bulk Terminal in Ust-Luga near Saint Petersburg has further improved our netback earnings through vertical integration into port logistics.
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