OREANDA-NEWS. March 28, 2012. Uralkali has started preparatory works for mine construction within the framework of the Ust-Yayvinsky block development project at the Verkhnekamskoye deposit. The construction of the buildings and facilities for shaft sinking has started on the construction site. The construction of an electric power substation, which will supply electric energy to the industrial site, continues, as well as the construction of a diversion facility with water-pumping stations and water-storage tanks.

The Ust-Yayvinsky block development is one of the largest and the most ambitious projects in the global potash industry. The project has significant competitive advantages associated with its successful implementation. The block is situated on the same deposit as the Company’s existing mines, which enables Uralkali to use the existing infrastructure. The geological characteristics of the deposit, such as shallow ore occurrence, are well known to the Company and ensure the relatively low level of capital costs. The cost of less than USD 600 per tonne of additional capacity makes the Ust-Yayvinsky project the most cost-efficient greenfield project in the industry.

The construction of the surface complex at the Ust-Yayvinsky block will begin in 2015. The Company plans to complete the construction of shafts in 2017, and to produce its first ore in 2020. “Deilmann Haniel Schachtostroi” will carry out the shaft construction works. The new mine will have two shafts – a 530-metre deep shaft with skip winding (for hoisting the ore) and a shaft with cage winding (for hoisting and descending workers and loads). The mined ore will be processed at the Berezniki-3 plant, where it will be transported by a 6.3 km long cable-belt conveyer.

Vladimir Vaulin, Chief Engineer of Uralkali, commented:

“The Company has done substantial work since obtaining the licence for the Ust-Yayvinsky block development. We selected the institute for design documentation, completed all necessary research and investigations, developed the feasibility study and submitted it to the relevant state bodies, and received an approval by the Federal Agency on Mineral Resources. At the end of last year, we chose a company that will be working with us on this ambitious project. We believe that our partner will make use of its outstanding experience acquired at similar construction projects all over the world. Today, we begin the preparation works for shaft construction, which is the most important stage in the implementation of the Ust-Yayvinsky project”.