PhosAgro, Moscow, plans to increase its capital expenditure in 2022 to RUB52.5 billion, excluding capitalized repairs (approximately $711 million at current exchange rates), under the draft budget approved by its Board of Directors, the group reported on Dec. 22. Planned capital expenditures for 2021, excluding capitalized repairs, was RUB31.5 billion.
“Key projects for the year ahead include the final stage of construction of a modern phosphate-based fertilizer production complex and supporting infrastructure in Volkhov, as well as expansion of our mining operations, the start of construction of a new ammonia and urea complex at Cherepovets, and an increase in production capacities at the Balakovo site,” said PhosAgro CEO Andrey Guryev in a statement.
He added that these and other projects will be included in the updated version of the group’s “Strategy to 2025,” which will be submitted to the Board of Directors next spring.
The Russian fertilizer group took the decision in November to go ahead with the new RUB120 billion ammonia and urea complex, which will have a production capacity of 1 million mt/y of ammonia and up to 1 million mt/y of urea (GM Nov. 26, p. 1). Construction is due to start in 2022, with first product expected at the end of 2025.
Meanwhile, PhosAgro expects its total finished fertilizer output to reach 10.5 million mt this year, up 3 percent over 2020’s output.