OREANDA-NEWS. September 24, 2007. Following the flooding incident at Mine 1, Uralkali has now completed extensive studies to assess any potential mine safety or flooding risks associated with its two existing operational potash mines (Mine 2 and Mine 4). This assessment has been conducted in conjunction with a third party industry expert, Ercosplan. Ercosplan, based in Germany, is a leading potash and other mineral salt specialist, with extensive expertise in geology, rock mechanics, mining and processing as well as environmental issues.

As part of this study, Ercosplan specifically analysed the overall mine layout, water inflow prevention measures, hydrogeology and tectonics in the overburden strata, the thickness and homogeneity of the hydrogeological protective layer on the top of the potash deposit and its integrity during mining-induced deformation of the overburden strata and such parameters were used to identify differences and similarities between the flooded Mine 1 and the mines under operation, Mine 2 and 4, to assess any potential or specific flooding risks for Mine 2 and 4. Following a comprehensive evaluation, Ercosplan have concluded that “no specific flooding or mining risk exists in any of Uralkali’s mines under operation. The general risk of flooding that does exist due to the inherent water solubility of the host rock, is common with all potash mines.”

The bases of the conclusion is founded on significant advances in exploration and therefore understanding of geological and hydrogeological conditions of the Verkhnekamskoye deposit between Mine 1, which started operations in the early 1950’s, and the time when production started at Mines 2 (1970) and 4 (1987). During the early 1950’s, mine design followed regulations which did not consider the local geological and hydrogeological frame conditions of the Verkhnekamskoye deposit. In the intervening period, sufficient developments in geological exploration related to the determination of anomalous geological structure as well as more appropriate rock mechanical design studies were concluded. Based on these results, mining regulations were updated and utilised in the design, construction and operations of Mines 2 and 4.

Commenting on the study, Vladislav Baumgertner, President, Chairman of the Management Board and General Director said:

“From Uralkali’s own internal geological and hydrogeological examinations we were confident that the same risks associated with Mine 1 were not present at Mines 2 and 4 and the conclusion of the Ercosplan studies has further reinforced this view. Uralkali’s mining operations and mine safety practices are founded on the best known international practice in the potash mining industry.”