Minsk, Belarus — First production from a new potash mine under development in Belarus is anticipated in 2020, according to its main promoter, Russian billionaire Mikhail Gutseriev. The new ore mining and processing enterprise is to be built on the Nezhinsky section of the Staroinskoye potash salts deposit in the Minsk region, Eastern Belarus. Initial output is put at 1.1 million mt/y, ultimately rising to 1.8-2.0 million mt/y, according to Belta, the Belarus national news service. Gutseriev controls the Minsk-based Slavkaliy Co., which was established in 2011 by U.K.-registered GCM Global Energy plc to develop the new potash mining operation. Gutseriev is understood to be a major shareholder in the London-based oil and exploration services company. He is also the largest shareholder in Russian oil producer OAO RussNeft. Slavkaliy, together with the Belarusian Finance Ministry and Belarusbank, signed a Memorandum of Understanding (MOU) with China Development Bank in May to borrow up to $1.4 billion to build the mine and processing plant. According to Belta, the money will be borrowed against guarantees of the Belarus government. Gutseriev’s B&N Bank is reported to be investing about $250 million in the potash project, the total cost of which is put at some $1.5 billion. According to news reports quoting Gutseriev in an interview earlier this month, China is guaranteeing the purchase of the entire output from the planned potash operation until at least the investments are recouped, which Gutseriev believes will be probably by 2029. Belarus Potash Co. (BPC) is expected to handle the potash exports. Preparatory work on the project has been underway since 2012. In addition to the mine and processing plant, the project includes the construction of a gas turbine power plant, a gas pipeline from Soligorsk GDS, and the refurbishment of part of the Urechye passenger railway station at Luban to handle the potash from the new mining site.
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