Our strategy

PhosAgro’s strategy aims to achieve sustainable growth by extracting greater value from our unique natural resources and production assets. our mid-term goal is to expand total fertilizer production capacity to 7.1 million tonnes per year, significantly increasing internal processing of our own high- grade phosphate rock.

Strategic goal Production and sales flexibility: Organic growth through capacity expansion and greater operational efficiency: Utilisation of the full potential of apatitenepheline ore: Consolidation of ownership in production facilities:
2012 Achievements
  • Launched sales of fertilizers in containers in February, allowing us to sell to a wider range of customers, and opening up access to new markets where infrastructure limits the ability to handle bulk shipments
  • Increased NPK/NPKS/NPS/PKS grades from 7 to 16
  • NPK production and sales increased 37.1% and 39.2% y-o-y, respectively, in 2012
  • NPS production increased 321% to 346 thousand tonnes in 2012
  • Commissioned new 500 kt per annum urea plant
  • Launched 32 MW electricity generation capacity at PhosAgro-Cherepovets
  • Signed long-term supply agreement with UC RUSAL to supply fluoric salts through 2034
  • Entered the technical phosphates markets following acquisition of Metachem at end of 2012
  • Total ownership (including affiliated parties) of Apatit as of April 2013 has reached 95.95%, up from 57.58% at IPO
  • Ownership of PhosAgro-Cherepovets amounted to 87.61% following the merger of related production facilities Ammophos and Cherepovetsky Azot
Future plans
  • Consider further increases to number of complex NPK fertilizer grades in response to market demand
  • Implement projects to increase production flexibility with construction of NPK/MAP/DAP/NPS line at BMF with 450 kt per annum NPK capacity
  • Complete construction of shaft No. 2 at Kirovsky Underground Mine, which will increase annual apatite-nepheline ore production from 12 mln t per annum in 2012 to 14 mln t per year at this mine after 2016
  • Construct new ammonia plant with 760 kt per annum capacity at Cherepovets site by the end of 2016; the gas consumption per tonne of ammonia of this new plant (including new gas turbine power plant) is expected to be 941.5 sm³/t, significantly below the CIS average of 1,155 sm³/t
  • Modernisation of Metachem’s facilities to expand PK/PKS production capacity up to 100 kt per annum
  • Modernise production facilities to increase aluminium fluoride capacities
  • Continue research & development activities aimed at the development of production processes for the extraction of rare earth minerals from our apatite-nepheline ore
  • Increase ownership of Apatit to 100%
  • Increase ownership of PhosAgro-Cherepovets to 100%
  • Full consolidation of Metachem phosphate assets
Production flexibility combined with organic capacity growth — our progress in 2012:
23 Downstream products in 2012
from 7 to 16 increase in NPK grades in 2011–2012