EuroChem Group AG expects to reach full capacity production of 2.3 million mt/y of potassium chloride at its VolgaKaliy operation in Russia’s southern Volgograd region by 2025, with the possibility of subsequently expanding to up to 4.3 million mt/y, according to a Fertilizer Daily report, citing a company press release.
VolgaKaliy has been dogged by geological issues that have impacted and delayed the project’s development. The operation produced 228,000 mt of potassium chloride in 2021 and also made its first commercial sales that year, according to EuroChem commenting in February last year (GM Feb. 25, 2022). The company did not publish any operational results for 2022.
In the recent press statement, according to the report, EuroChem-VolgaKaliy Executive Director Yevgeny Sakharov said some 3 million mt of potassium salts have been mined since the project started.
However, some analysts and market watchers are sceptical that VolgaKaliy can achieve its planned output target by 2025.
“We view this announcement with caution,” said Green Markets Research Director Alexis Maxwell. “This site has had persistent geological issues, while sanctions have restricted Russian producers’ parts procurement activities.”
EuroChem produced 2.39 million mt of potash in 2021 at its other potash production site, Usolskiy, south of Berezniki, and last February said the operation was on track to reach 2.7 million mt/y capacity “soon” (GM Feb 25, 2022).
The company last September announced it also had secured approval from the state expert review office, Glavgosexpertiza, for its proposed project for a second expansion phase at Usolskiy (GM Sept. 9, 2022).
The project involves the construction of a new underground mine with capacity to mine 12.6 million mt/y of sylvinite ore and a processing plant, together with additional transport and utilities infrastructure.
EuroChem has still to take a final investment decision on the development, but at the time of the announcement planned to make the decision by the end of 2022.