PhosAgro Board of Directors approves progress of key investment projects under the company's Development Strategy to the Year 2025
Moscow – At a meeting today, the Board of Directors of PhosAgro, one of the world's leading producers of phosphate mineral fertilizers, approved the progress to date in implementing the company's key investment projects.
As PhosAgro CEO Mikhail Rybnikov emphasized in his report on implementation of the company's development strategy in 2023 and key areas for 2024, the creation of new and modernization of existing production facilities at the group's enterprises are proceeding smoothly in line with the Development Strategy to the Year 2025.
"In Cherepovets and Volkhov, projects are underway to increase apatite concentrate processing by more than 400 thousand tonnes. In Cherepovets, work on construction of the main phosphogypsum transport conveyor and maintenance of sulphuric acid production capacity also continues.
In Balakovo, the third phase of development of the production facility, involving the creation of a flexible MAP/DAP/NPS/NPK fertilizer production scheme and an increase in overall output, is actively progressing. Since the beginning of the year, the SK-20 sulphuric acid unit has reached its design capacity. The project has boosted sulphuric acid production by 350 thousand tonnes per year. Construction of the SK-20/1 sulphuric acid unit has begun, with commissioning scheduled to take place at the end of 2025. A phosphogypsum conversion unit and one of the technological systems of the mineral salts plant (FOK-2) are being upgraded to increase the output of feed monocalcium phosphate by 53,000 tonnes per year. Target capacity is expected to be reached in Q3 2024. In 2025, output at the Balakovo plant will increase by almost 1 million tonnes, and it will produce 3.5 million tonnes of fertilizers sought after by Russian farmers. Development of the ore resource base also continues. Construction of a new mine to develop the Rasvumchorr Plateau deposit is underway. At the end of this year we plan to commence underground mining at the Gakman section of the Yukspor deposit at the Kirovsky mine. As part of the redesign of ANOF-3, the beneficiation plant's capacity will be increased by almost 12% to 10.5 million tonnes of apatite concentrate per year.
Successful implementation of the long-term development programme and immense capital expenditure – a record RUB 73 billion is planned to be invested in 2024 – are allowing new production records to be achieved. Q1 results show that the company increased its output of agrochemical products by almost 7% to a record 3 million tonnes. With this growth rate, PhosAgro expects to achieve a new production record for the year and surpass the milestone of 11.5 million tonnes.
It is gratifying that PhosAgro's successes in the operational and social spheres, as well as its commitment to ESG principles, are regularly recognized by the business community. The PhosAgro team received a wonderful present for Chemical Workers' Day when they won in two categories of the Russian national competition "Flagship Businesses: Dynamics, Responsibility, Sustainability – 2023", organized by the Russian Union of Industrialists and Entrepreneurs (RUIE): for dynamic business development and for high-quality ESG reporting. And this is in addition to the highest honour – the national award "Leaders of Responsible Business", established by order of Russian President Vladimir Putin and conferred upon us at the RUIE congress at the end of April of this year," said Mikhail Rybnikov.
Chairman of the Board of Directors of PJSC PhosAgro Viktor Cherepov congratulated the workforce of the Kirovsky Mining and Beneficiation Plant on a new record: Apatite-Nepheline Beneficiation Plant No. 3 produced its 750 millionth tonne of apatite concentrate in its history.
"This milestone is the result of the work of many generations of miners and ore-enrichment workers, whose selfless labour has ensured the food security of our country for almost a century. It is in the polar town of Kirovsk that PhosAgro Group's long production chain, which transforms the planet's purest apatite concentrate into innovative brands of environmentally friendly mineral fertilizers, originates," said Viktor Cherepov.
The Board of Directors reviewed information on PhosAgro's financial results for Q1 2024, including interim consolidated financial statements under IFRS. To determine the amount of dividends, shareholders have been invited to choose one of three options (RUB 165 per ordinary share, RUB 234 per ordinary share or RUB 309 per ordinary share) or abstain/vote against each of the options. The Board of Directors has recommended 11 July 2024 as the record date for receiving the dividends. The annual general meeting of shareholders at which this matter is to be considered will be held in absentia on 30 June 2024.
Reports were heard on the state of occupational health and safety at entities that are part of the same group as PJSC PhosAgro, on the results of monitoring management of the Company's key risks in Q1 2024, on the main aspects of cybersecurity at companies of the same group as PJSC PhosAgro, on the results of implementation of the Company's information policy in 2023 and its main areas in 2024, and on implementation of the information technology strategy in 2023.
The Board of Directors reviewed information provided by the chairmen of the committees of the Board of Directors of the Company on the work of the respective committees in Q1 2024 and proposed that the annual general meeting of shareholders approve JSC Unicon as the Company's auditing firm for 2024 under Russian Accounting Standards.
At the meeting, new members of the Company's Management Board were elected and consent was given to the members of the Management Board to concurrently hold posts in the management bodies of other organizations. The new Management Board includes PhosAgro CEO Mikhail Rybnikov, PhosAgro Deputy CEO for Corporate and Legal Affairs Alexei Sirotenko and JSC Apatit (PhosAgro Group) Chief Economic Officer Dmitry Morozov.