EuroChem VolgaKaliy LLC, a wholly-owned subsidiary of EuroChem Group AG, produced 427,000 mt of potassium chloride at its VolgaKaliy operation in Russia’s southern Volgograd region in 2022, an increase of “1.9 times” compared to 2021, and plans to produce 906,000 mt this year, according to an Interfax report, citing a representative of the company.
Potash sales volumes from VolgaKaliy also increased 1.9 times compared to 2021, with some 378,000 mt sold. The company is targeting to increase sales volumes to 981,000 mt this year.
According to the report, EuroChem VolgaKaliy plans to increase investments in the development of production by 21.6% in 2023, to RUB21.4 billion (approximately $268.3 million at current exchange rates). The development plans include the completion of construction and commissioning of the second skip shaft this year, which will hoist mined potassium ore to the surface.
New mining equipment will also be put into operation this year, which, according to the company, will increase the volume of penetration and will start “cleaning work” in the mine.
The company is also targeting the commissioning of the granulation lines at the sylvinite processing plant in 2023, which it said will increase the production of potassium chloride from 58.7% of design capacity to 80-82%, with “at least 95% product quality.”
EuroChem’s VolgaKaliy potash mine has been burdened by geological issues that have impacted and delayed the mine’s development. The operation made its first commercial sales in 2021 after producing 228,000 mt that year, according to comments made by EuroChem in February 2022 (GM Feb. 25, 2022).
The group this past January said it expected VolgaKaliy to reach full production capacity of 2.3 million mt/y of potassium chloride by 2025, with the possibility of subsequently expanding capacity to up to 4.3 million mt/y (GM Jan. 13, p. 29).
However, some analysts and market watchers are skeptical that VolgaKaliy can achieve its planned output by 2025. Green Markets Research Director Alexis Maxwell viewed the announcement with caution. “This site has had persistent geological issues, while sanctions have restricted Russian producers’ parts procurement activities,” she said.
EuroChem produced 2.39 million mt of potash at its other potash production site, Usolskiy, south of Berezniki, in 2021 (GM Feb. 25, 2022). The group has not published any operational results since 2021.