OREANDA-NEWS. March 28, 2012. Uralkali (LSE: URKA), one of the world’s largest potash producers, announces that it has concluded a contract with Deilmann-Haniel Shachtostroj LLC on construction of shafts for the Ust-Yayvinsky mine.

The contract includes development of operational documentation, construction of facilities for the surface sinking complex, shaft sinking and equipping. The development of operational documentation will start on 1January 2012. The preparatory works on the construction site of the mine will be launched in March 2012.

The project is to be completed in 2017. According to Uralkali estimates, the cost of construction of shafts may amount to approximately USD 300 million. It is planned that the Ust-Yaivinsky mine will produce first ore in 2020. The project capacity of the new mine is 2.8 million tonnes.

Vladislav Baumgertner, Uralkali CEO:

“Uralkali’s expansion programme includes brownfield and greenfield projects. With CAPEX of less than 600 USD per tonne of additional capacity, the Ust-Yayvinsky mine is the most effective greenfield project in the potash industry. The ore produced at the new mine will allow to increase the Company’s overall capacity and make up for the decreasing ore reserves of Berezniki-2 mine which will be depleted in 2025.”