OREANDA-NEWS. November 29, 2011. Uralkali (LSE: URKA) announces the successful completion of the works to repair the sinkhole under the train tracks that occurred on 25 November 2010. Uralkali together with the Urals Scientific, Research and Project Institute (“Galurgia” Perm city) and Mining Institute of the Urals Affiliate of the Russian Academy of Science will continue surveying, seismic, geophysical, gas and geochemical monitoring that will help to forecast further movements of soil in the area of the filled sinkhole. If no irregular movements of soil are registered in 2012, Uralkali will consider developing a project aimed at restoring the railway connection at this area and the “Berezniki” train station.

Uralkali also clarifies that the information that has appeared in public sources about a new sinkhole in the town of Berezniki is incorrect. As Uralkali has previously stated, the research carried out in the sinkhole area revealed a potentially hazardous area situated 400 metres away from the filled sinkhole, near the non-operational Berezniki mining construction administration office (“BMCAO”). The area is characterized by high speed of soil subsidence concentrated on a local area. Following the recommendations of the scientific institutes, the hazardous area was contained and safety and security personnel were stationed in spring 2011. Public access to this territory is prohibited. All production and transportation facilities including the railways are at some distance from the subsiding area and outside the risk zone.

Since the beginning of 2011 research of this area has been conducted on a regular basis. The Galurgia Institute and Mining Institute of the Russian Academy of Science have conducted a weekly monitoring of the area. These institutes do not exclude the possibility of the creation of a sinkhole on the spot of the potentially hazardous area near BMCAO. Regarding the potential of a sinkhole anywhere in the contained area they anticipate no negative consequences for the town of Berezniki, Uralkali and other industry facilities.