Moscow-Uralkali has received a report from the latest Russian government investigation of the Uralkali Mine 1 accident that occurred in October 2006. While the new report states that “the cause of the accident was a combination of geological and technological factors,” it also suggests that the problems could have been detected earlier. In addition, it cites a “failure to leave a protective pillar under the railroad and a substantial delay in and incomplete scope of backfilling operations.” It listed expenses related to the resettlement of Berezniki residents and the construction of a 6-kilometer railroad bypass totaling 3.1 billion roubles (US$85.1 million). The government commission also mentioned possible future expenses. Uralkali said there has been no judicial decision requiring it to reimburse the expenses; however, the company said it cannot give any assurance that claims will not arise for the reimbursements, which could exceed 3.1 billion roubles. Uralkali as of Jan. 28 was still awaiting appendices to the commission decision for more study. Uralkali reiterated that it had already proposed to compensate voluntarily, to the tune of 3 billion roubles, which includes the costs of relocating 850-meter and 6-kilometer railway routes.
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