Moscow – At its meeting today, the Board of Directors of PhosAgro, one of the world’s leading vertically integrated phosphate-based fertilizer producers, commended the Company for its progress in implementing key investment projects.
As PhosAgro CEO Mikhail Rybnikov said in his report, the Company plans to invest a record RUB 75 billion by the end of the year: “Systematic efforts to execute our development strategy to 2025 are ongoing at all our production facilities. In Cherepovets and Volkhov (following the launch of our million-tonne plant in the spring), projects aimed at increasing the processing of phosphate rock by a total of nearly 400 thousand tonnes will be completed by the end of the year. We are implementing an initiative at our Cherepovets plant to expand the capacity of the aluminum fluoride shop from its current 75 thousand tonnes to 96 thousand tonnes per year. Supplies of aluminium fluoride, which is used as an electrolyte component in the production of aluminium, will be ramped up in 2026.
“The third stage in the development of our production plant in Balakovo is well under way, with a focus on establishing a flexible system for producing MAP, DAP, NPS and NPK fertilizers and increasing gross production volumes. Production at the plant will increase by nearly 1 million tonnes upon completion of the project, reaching a total of 3.5 million tonnes of essential fertilizers for Russian farmers. This year, the plant began producing diammonium phosphate and increased its production of feed monocalcium phosphate by 100 thousand tonnes per year. The facility’s SK-20 sulphuric acid plant reached design capacity, ramping up the production of sulphuric acid by 350 thousand tonnes per year, and the construction of our SK-20/1 sulphuric acid plant is well under way. Set for completion in the second half of 2025, the plant will increase sulphuric acid production by 750 thousand tonnes per year. Next year, we also plan to complete the construction of a phosphogypsum conversion unit in Balakovo and to finalize an initiative aimed at expanding our in-house power generation capacity by 50%, or 187 million kWh per year.
“We continue to develop our ore and raw material resources in Kirovsk. In March 2024, operations began at our Kirovsky mine’s +10 m level. We plan to begin underground mining in the Gakman section of the Kirovsky mine’s Yukspors deposit later this year. We are making progress on the construction of a new mine for the development of the Rasvumchorr Plateau deposit. Total capital investments in the project will amount to around RUB 38 billion. We intend to allocate more than RUB 33 billion until 2035 to develop the Vostochny mine.”
Viktor Cherepov, Chairman of PhosAgro’s Board of Directors, told the Board that, in carrying out large-scale investment projects, PhosAgro was meeting all its social obligations and allocating significant funds for the development of human resources.
“People are our greatest asset, and our workforce is the basis of all our production achievements and the foundation for our development. That’s why taking care of our employees and all the residents of the regions where we operate is our priority. We provide fair compensation. The average wages of our employees increased by 60% between 2021 and 2023 and were indexed by another 15% in February 2024. We have allocated more than RUB 11.5 billion over 10 years to develop our educational system, which begins in schools and continues through post-secondary education and finishes with employment with the Company. Some 3,000 graduates of this system are already employed at the Group’s production sites. This year, we have elevated our strategic partnership with the Murmansk Arctic University (MAU) to a new level. The goal of our ambitious new project with MAU as well as federal and regional authorities is to establish in Apatity the leading institution in the country for training mining engineers. Some RUB 3 billion has been invested to develop the facility. We have been expanding our support for social and charitable projects, having allocated a total of over RUB 25 billion for these purposes in 2022–2023. Our achievements when it comes to social responsibility have been recognized by the business community. In October, we were the top-rated company in the latest ESG ranking by the independent agency RAEX, which recognizes companies for their exemplary ESG practices. We also became the first company to earn RAEX’s top rating, AAA. Our well-established commitment to the principles of responsible business will continue to be a top priority for us,” said Mr Cherepov.
The Board of Directors reviewed the Company’s financial results for 9M 2024, including its IFRS interim consolidated financial statements, and recommended that an extraordinary meeting of shareholders approve dividend payments for 9M 2024 in the amount of RUB 249 per ordinary share. The Board recommended setting 22 December 2024 as the dividend record date. The extraordinary general meeting of shareholders that will consider the issue will be held on 11 December 2024 by absentee voting.
Reports were also heard on occupational health and industrial safety at PhosAgro Group companies, on the monitoring of key risk management in 3Q 2024 and on cybersecurity efforts at PhosAgro Group production sites.
In addition, the Board reviewed reports from the chairs of Board committees on the work of their respective committees in 3Q 2024 and on arrangements for the Board’s self-assessment of its work in 2024.
The Board of Directors recognized that Natalia Pashkevich and Andrey Sharonov meet the independence criteria set out in the Regulation on the Board of Directors of PJSC PhosAgro, the Corporate Governance Code recommended by the Bank of Russia for use by joint-stock companies and listing rules.