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Production upgrades

Production upgrades have created the necessary conditions for further integration through:

  • increased production of sulphuric and phosphoric acids - key elements for the production of phosphate-based fertilisers;
  • increase in the self-sufficiency of PhosAgro enterprises in ammonia –a raw material used in the production of nitrogen fertilisers;
  • increase in total fertiliser production, along with the launch of feed monocalcium phosphate, a new higher value added product.

2002

  • Balakovo Mineral Fertilisers becomes the first plant in Russia to launch the production of feed monocalcium phosphate (MCP).
  • A new level (172 meters above sea level) is commissioned, together with an underground crushing facility, at Apatit’s Kirovsky mine.

2003

  • Ammophos launches the first of four new sulphuric acid production lines.

2004

· The first programme for increasing the energy efficiency of PhosAgro enterprises is developed and adopted

2006

  • Apatit launches the first of three flotation units at its apatite-nepheline beneficiation plant-2 (ANBP-2).

2008

  • Balakovo Mineral Fertilisers launches the second monocalcium phosphate production line, raising capacity from 80,000 to 240,000 tonnes per year. The facility becomes more flexible: the enterprise can within one or two shifts switch capacities (about 8-16 hours) to the production of monoammonium phosphates (MAP) or diammonium phosphates (DAP), in line with fluctuations in demand.

2009

  • Ammophos commissions the final line of the new sulphuric acid production unit (714,000 tonnes of monohydrate a year). Total sulphuric acid production capacity at Ammophos rises to 2.7 million tonnes of monohydrate a year. Ammophos becomes Europe’s largest sulphuric acid producer.
  • A programme to introduce energy-saving technologies is completed at the plant. Ammophos is the industry’s only enterprise to be self-sufficient in electricity and also to supply electricity to the regional power grid.

2010

  • Apatit completes the upgrade of the flotation unit at its apatite-nepheline beneficiation plant-2 (ANBP-2)
  • Balakovo Mineral Fertilisers becomes the first enterprise in Russia to receive a European certificate for quality, safety and hygiene GMP+ for manufactured products.
  • Phosphate ore processing capacities at Ammophos rise to 2.7 million tonnes a year (compared to 2.2 million tonnes a year in 2001).
  • Ammophos commissions a new line for the packaging of mineral fertilisers into soft containers and their shipment for sale on the Russian market.
  • Ammophos commissions a modern fertiliser storage and shipment terminal, more than doubling the terminal capacity of its existing warehouses; the industrial port is revamped, while a new water desalination plant is launched for the combined heat and power plant of Ammophos.
  • Construction of a new urea production complex is launched at the Cherepovets Azot site.
  • A new sulphuric acid production line is launched at Balakovo Mineral Fertilisers, while the power plant’s capacity is doubled to 49MW a year.
  • Apatit starts implementing the main stage of the investment project to commission new facilities at its Kirovsky mine

2011

  • Balakovo Mineral Fertilisers completes its upgrade programme. The plant’s fertiliser production capacity reaches 1.2 million tonnes a year (up 60% compared to 2006).
  • Apatit’s Quality Management System is certified as compliant with the requirements of the ISO 9001:2008 International Standard.
  • As part of a programme to increase production flexibility, Ammophos completes the upgrade of its fourth production line, increasing NPK fertiliser production capacities to 1.7 million tonnes a year.
  • Ammophos commissions the first phase of a combined sludge reservoir with a total storage capacity of approximately 100 million cubic metres of phosphogypsum.
  • Ammophos starts operating the new Kriolit railway station
  • Apatit and TGC-1 start implementing an investment project to build a transit pipeline from Apatit CHP to the city of Kirovsk and to reconstruct Kirovsk’s heating systems. The project aims to improve the district’s environment, reduce the cost of heat and stabilise heat energy tariff growth rates for Apatit and Kirovsk consumers.
  • Apatit is awarded an ISO 9001:2008 compliance certificate.
  • Ammophos, Cherepovets Azot and Balakovo Mineral Fertilisers have already received similar ISO 9001 compliance certificates.

2012

  • The construction of a production and generation complex, which combines the production of 500,000 tonnes per year of urea with a 32MW gas turbine electricity plant, is completed and launched. The launch of the complex doubles the company’s urea production capacities, while total production of mineral fertilisers at PhosAgro’s Cherepovets site will exceed 4 million tonnes. As a result of the commissioning of the new gas turbine electricity plant, total generation capacity at PhosAgro’s Cherepovets site rises to 134MW.

2013

  • The consolidation of Metachem has further diversified PhosAgro’s product offering, enabling the Company to enter the technical phosphates market and to increase its internal processing of phosphate rock by 240 ths tonnes per year.  Metachem’s annual production capacities are: sulphuric acid, 215 ths tonnes; phosphoric acid, 80 ths tonnes; potassium sulphate, 80 ths tonnes; sodium tripolyphosphate, 130 ths tonnes.
  • Balakovo Mineral Fertilisers passes accreditation audits of its quality management system and environmenalt management system for compliance with ISO 9001:2008 and ISO 14001:2004.
  • Construction of the second Yuksporsky Tunnel at Apatit's Kirovsk mine is complete. The project is part of PhosAgro's comprehensive investment programme to modernise and upgrade its fixed assets and reduce costs by using advanced engineering solutions.

2014

  • PhosAgro and the German company GEA Messo P.T. signed a contract for the design, delivery and installation of equipment for a new 300 ths tonnes/year ammonium sulphate line at PhosAgro-Cherepovets. The initial design work will be done by Mining and Chemical Engineering, a PhosAgro subsidiary.  The new capacity will use the best available technologies and equipment, helping to maximise energy efficiency, reduce resource consumption, improve labour productivity, as well as improve environmental and workplace safety.
  • The Balakovo branch of Apatit passed an external recertification audit of its monocalcium phosphate (non-fluoride feed phosphate) production safety systems in accordance with GMP+ B2 (2010) “Production of Feed Ingredients”. 
  • The Australian corporation Orica launched a new emulsion explosives production facility to supply PhosAgro subsidiary Apatit. The USD 25 million project at the site of Apatit’s Vostochniy mine was completed exactly on time and financed by Orica, which is the world leader in emulsion explosive production and use.
  • A service centre for PhosAgro subsidiaries was opened at the Company’s Cherepovets site. The project is being implemented in cooperation with PricewaterhouseCoopers.  The goal of the project is to improve the quality and efficiency of PhosAgro’s accounting, tax, treasury and human resources services by standardising and unifying business processes into a single service centre. One of PhosAgro’s strategic goals is to streamline corporate functions by moving them out of individual production sites or organisational structures and concentrating them in a service centre. The service centre will manage all accounting and tax reporting, as well as human resources administration, payroll and treasury functions previously handled by individual subsidiaries.

2015

  • In February 2015, Metachem commissioned a new 100 ths tonnes/year PKS production line (PKS-100) and opened a finished product warehouse with a storage capacity of up to 1,500 tonnes (in big-bags). Total investments in the project, which PhosAgro financed from its own cash flows, amounted to over RUB 500 million.  The production technology for PKS fertilizers was developed by Russia’s only scientific research institute devoted to fertilizer technologies, the Y. V. Samoilov Scientific Research Institute for Fertilizers and Insectofungicides.  The new production line was designed by Mining and Chemical Engineering. Both organisations are PhosAgro subsidiaries.
  • Construction of new liquid ammonia facilities at the Balakovo branch of Apatit was completed. The liquid ammonia storage is a complex chemicals facility, which took under two years to build and cost RUB 2.6 billion.  The facility consists of six spherical reservoirs, each with a capacity of 3,000 m3 of ammonia.  This is the first facility of its size in Russia.  The total storage capacity is 8,000 tonnes of ammonia. This will improve the production site’s supply of raw materials, and enable further expansion of production capacities.

2016

  • The main shaft No 2 at the Kirovsky mine was brought to full capacity; as a result, the share of underground production with low prime cost increased to 74% in 2016, up from 71% in 2015 (excluding the mining of non-commercial ore).
  • 27% of all export volumes of finished goods for 2016 were shipped via the Smart Bulk Terminal during the first full year of its operation, thus reducing the logistics costs for the transportation and transshipment of mineral fertilizers.
  • Work began on upgrades to Beneficiation Plant No 3 that will optimise processing facilities and reduce plant-wide expenses for their maintenance and operation.
  • The reconstruction of existing facilities (at a relatively low cost compared with the cost of building new facilities or expanding existing ones) enabled PhosAgro to increase its total production of phosphate-based fertilizers by 10.8% year-on-year to 5.9 million tonnes.

2017

  • As part of activities carried out during the Year of the Environment in the Russian Federation, JSC PhosAgro-Cherepovets commissioned new biological and chemical treatment facilities.
  • PhosAgro Group commissioned the small Plateau pit at JSC Apatit. Ore reserves in the open-pit mine amount to 2.117 million tonnes, with P2O5 content of 15.43%. The overburden ratio is close to zero, since the ore body has a lenticular shape and is located close to the surface under a small layer of loose industrial deposits.  
  • A positioning and communication system was launched for testing purposes at the combined Kirovsky mine of JSC Apatit (PhosAgro Group). The introduction of the system will take the optimisation of production processes to a whole new level by enabling the continuous monitoring of personnel and monitoring of the location of equipment underground.

2018

  • A project for remote-control drilling in an underground mine was carried out at the Kirovsky mine of the Kirovsk branch of JSC Apatit. There are currently no other projects of this kind in Russia. The comprehensive project includes a system of telemetry equipment that is installed on drilling rigs, along with dedicated software and an operator control panel. An operator at the above-ground control centre controls the operation of three drilling rigs (this number will increase to six at a later date).
  • Following upgrades at Apatite-Nepheline Beneficiation Plant No 2 (ANOF-2) at the Kirovsk branch of JSC Apatit, an apatite concentrate production line was launched for testing purposes. The new Apatite Concentrate Processing Facility at ANOF-2 can carry out the entire technological processing cycle for the beneficiation of up to 7 million tonnes of apatite-nepheline ore per year, and it can also efficiently process poor and non-commercial ores.
  • PhosAgro Group commissioned an upgraded SK-600/3 sulphuric acid production unit and a terminal for storing raw materials with a capacity of 30 thousand tonnes. Investments in these projects were in excess of RUB 5 billion. The production capacity of the SK-600/3 unit increased from 680 thousand tonnes to 1 million tonnes of sulphuric acid per year. Given the current market shortage of this product, the enterprise will ensure its self-sufficiency in terms of one of the key components for fertilizer production and will thus reduce its dependence on external suppliers.
  • With the commissioning of an ammonia pipeline and upgrades to its sulphuric acid unit, PhosAgro Group completed an investment project worth more than RUB 3.2 billion at its production facility in Balakovo. This major investment project increased the productivity of the SK017 unit and enabled the enterprise to increase its production of monohydrate from 600,000 to 1,000,000 tonnes per year.

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