Russian fertilizer producer Acron estimates that $1.6 billion in capital expenditures will be needed to complete the Talitsky potash project, according to Interfax, citing the company’s annual report. Acron said it has already spent about $500 million in capex, not including the cost of the license.
Acron said potash production at the Talitsky mine is scheduled to start in 2026 and is expected to reach design capacity in 2029. The operation will have an initial production capacity of 2 million mt/y when fully ramped up, with plans to expand to 2.6 million mt/y.
The company spent $246 million on the project in 2023, completing the sinking and equipment of vertical shafts and starting construction on the mine’s surface facilities, processing plant, tailings dump, auxiliary shops, and external infrastructure, Interfax reported.
Acron subsidiary Verkhnekamsk Potash Co. (VPC) secured the license to the Talitsky section of the Verkhnekamsk potassium and magnesium salts deposit in Perm Territory in 2008. The project was later joined by banks and at the end of 2023 Acron owned 50% plus one share in VPC, Sberbank held 29.9%, state bank VTB owned 10%, and Otkritie held 10.1%. Acron bought out 30% of VPC shares from its partner banks earlier this year (GM March 29, p. 30), increasing its stake to 80%.
The Talitsky mine will have design capacity to produce 2 million tonnes of potassium chloride per year and there are plans to expand to 2.6 million tonnes. Acron itself needs 600,000 tonnes of potash per year.