OREANDA-NEWS. PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, announces the signing of a contract for the supply of aluminium fluoride and the raw materials for its production between PhosAgro-Cherepovets and UC RUSAL, the world's largest aluminium producer, as part of the cooperation agreement through 2034 between the two companies.

The first contract involves the supply of aluminium fluoride produced by PhosAgro-Cherepovets to UC RUSAL TD until 31 December 2034. The approximate value of the transaction is over RUB 20 billion.

UC RUSAL TD will supply aluminium hydroxide, which is used in the production of aluminium fluoride, to PhosAgro-Cherepovets under a second agreement. The value of the second transaction is approximately RUB 6.5 billion. Both agreements were approved by a PhosAgro-Cherepovets extraordinary general meeting of shareholders on 24 December 2013.

The agreement between PhosAgro and UC RUSAL aims to support the further modernisation of PhosAgro-Cherepovets and the eventual increase of aluminium fluoride supplies to RUSAL production facilities from 23 thousand tonnes in 2012 to 35 thousand tonnes in 2016.

The agreement to increase supplies of aluminium fluoride to RUSAL provides PhosAgro with guaranteed long-term demand for this product, enables the Company to finance the expansion of its production capacities with a guaranteed return on investments, increases the depth of processing of its mineral raw materials, and helps to reduce PhosAgro-Cherepovets' impact on the environment.