OREANDA-NEWS. January 21, 2011. Uralkali (Berezniki, Perm Territory) and Silvinit (Solikamsk, Perm Territory) announce their production results for the 12 months of 2010. In 2010 Uralkali produced approximately 5.1 million tonnes of potassium chloride (KCl), which is 1.9 times higher than in 2009. Silvinit produced 5.2 million tonnes of KCl in 2010, which is a 1.5-fold increase of 2009. Thus, both potash producers showed complete recovery of their production volumes by reaching the all-time pre-recessionary highs.

In December 2010, Uralkali and Silvinit announced their Proposed Combination, creating a leader in the global potash market. The Proposed Combination will create one of the largest potash companies worldwide, with leading levels of production and production capacity. Moreover, it is expected that the realization of potential synergies will help the combined company to further reduce the unit costs which will be among industry’s lowest. All that will allow the combined company to compete successfully with other players globally.

Pavel Grachev, Uralkali President and CEO:

“The aggregate production of Uralkali and Silvinit in 2010 exceeded 10 million tonnes and thus matched the world’s leading potash producers’  production levels. In 2010, we took the first step towards the combination of the two potash producers and creation of a leader in the global potash sector. Down the line, the combined company plans to increase production levels in order to meet the growing potash demand by implementing  brownfield development projects at BKPRU-4 and SKRU-3, and  greenfield development projects at Verkhnekamskoe field.”

Vladislav Baumgertner, Silvinit CEO:

“It would be fair to call last year the rebound time for the potash industry. The demand for potash has increased significantly, and we have a strong belief this growth will continue. We estimate that the global potash market will grow up to 55-60 million tonnes in 2011. Potash consumption will remain mostly concentrated in China, India, Brazil and Southeast Asia.”