Acron Group Accelerates Construction of Talitsky Potash Mine

Press Release

| Source: ACRON16 August 2021

 

Acron Group Accelerates Construction of Talitsky Potash Mine

Acron Group, a leading vertically integrated mineral fertiliser producer in Russia and globally, is accelerating construction of the Talitsky potash mine in Perm Krai and increasing the project’s planned capital investments for 2021 and 2022 from USD 60 million to USD 222 million.

Shafts are currently being reinforced and finished, construction of a motorway is near completion, and construction has started on the Ural 220/10/6 kV main step-down substation.

The Group is also holding tenders to select the main equipment suppliers and contractors to construct the mine’s facilities, surface complex, and external infrastructure facilities.

The project has Russian government support because its implementation will improve the regional economy. This support includes an Investment Protection and Promotion Agreement, a Special Investment Contract, and a Corporate Competitiveness Programme, all of which the Group has already signed.

Comments from Alexander Popov, Chairman of Acron’s Board of Directors:

‘In the current circumstances, we believe it is possible to accelerate construction to obtain the first batch of the product in 2025.

‘Prior to the acute phase of the COVID-19 pandemic, we managed to dramatically improve the Project’s risk profile by finalising the sinking of the shafts. Now, we can conduct construction operations both underground and on the surface at the same time.

‘The Project’s budget has been clarified. Remaining investments are estimated at USD 1.3 billion. Of this amount, approximately USD 700 million will be spent before the first batch of potash is produced.

‘All of the project’s engineering and design solutions provide for further expansion of the mine’s capacity from 2.0 mtpa to 2.6 mtpa of potash.’

Media Contacts:

Sergey Dorofeev

Anastasia Gromova

Tatiana Smirnova

Public Relations

Phone: +7 (495) 777-08-65 (ext. 5196)

Investor Contacts:

Ilya Popov

Sergey Smirnov

Investor Relations

Phone: +7 (495) 745-77-45 (ext. 5252)

Background Information

Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and Smolensk region (Dorogobuzh). The Group owns and operates a phosphate mine in Murmansk region (North-Western Phosphorous Company, NWPC) and is implementing a potash development Project in Perm Krai (Verkhnekamsk Potash Company, VPC). It owns transportation and logistics infrastructure, including three Baltic seaport terminals and distribution networks in Russia and China. Acron subsidiary North Atlantic Potash Inc. (NAP) holds mining leases and an exploration permit for ten parcels of the potassium salt deposit at Prairie Evaporite, Saskatchewan, Canada. Acron also holds a minority stake (19.8%) in Polish Grupa Azoty S.A., one of the largest chemical producers in Europe.

In 2020, the Group sold 7.8 million tonnes of main products to 74 countries, with Russia, Brazil, Europe, and the United States as key markets.

In 2020, the Group posted consolidated IFRS revenue of RUB 119,864 million (USD 1,661 million), with EBITDA of RUB 35,311 million (USD 489 million). Acron’s shares are traded on the Moscow Exchange, and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs over 11,000 people.

For more information about Acron Group, please visit www.acron.ru/en