EuroChem Group AG, Zug, Switzerland, this week updated on developments at its major investment projects as part of its full-year IFRS financial results.
The group reported that the EuroChem Northwest 2 project, which comprises a new 1 million mt/y ammonia plant and a 1.4 million mt/y urea plant in Kingisepp, Russia, has entered the active construction phase and the development remains on track to come on stream in 2023 (GM Aug. 20, 2021). The group green-lighted the project in February 2021 (GM Feb. 12, 2021).
EuroChem said the project capex spent as of December 31, 2021, stood at $738 million, or roughly half of total project costs. EuroChem Northwest 2 will be 80 percent funded by an off-covenant long-term project finance facility.
The Usolskiy Potash Plant, south of Berezniki, is expanding its Phase 1 facility, and the group said the plant is on track to reach 2.7 million mt/y capacity plant “soon.” Usolskiy produced 2.39 million mt of potash last year.
At the VolgaKaliy Potash Plant in Russia’s southern Volgograd region, EuroChem said the mine plan has been adjusted and coordinated with the shaft construction schedule following the integration of a new Mine Planning team (GM Aug. 20, 2021). The group reported the site produced 228,000 mt in 2021, with all volumes successfully sold to market.
The group reported exploration work continues at its potential third potash project outside Saratov in southwest Russia, the so-named SaratovKaliy Potash Project. Following positive analyses provided by 2D surveying, 3D seismic studies results will be available in the second quarter of 2022. The full feasibility study from this site will be completed in 2022.
EuroChem took the decision in 2019 to build an 8 million mt/y capacity transshipment terminal at the Russian Baltic port of Ust-Luga (GM June 14, 2019). The group said the port will serve as an important logistics terminal for product arriving by railcar from the EuroChem Northwest complex, just less than 50 km away, as well as other EuroChem and third-party cargoes.
The project passed to the execution stage in 2021 (GM April 2, 2021), and is scheduled for completion in 2024.