PhosAgro PJSC’s Board has approved a capex totaling RUB73 billion (approximately $797.6 million at current exchange rates) for 2024.The capex amount includes planned spending on capital repairs, the company said in a Dec. 21 media statement.
The capex allocation will include spending on the continued development of the company’s ore and raw material base, with PhosAgro planning to start underground mining operations in the Gakman section of the Kirovsky apatite mine’s Yuksporr deposit in late 2024.
The company also plans to complete ongoing projects at its Cherepovets and Volkhov sites next year, which will see increases of 218,000 mt/y and 153,000 mt/y, respectively, in the volume of phosphate rock processed. PhosAgro reported in September that it was targeting its Volkhov production complex in southern Russia to reach design capacity of 1 million mt of MAP/DAP by the end of this year (GM Sept. 1, p. 24).
At its Balakovo site, the company expects the project for the third phase of development to reach target capacity in the first quarter of next year, increasing the production of feed phosphates by 14%, to 443,000 mt/y. It also expects the upgraded SK-20 industrial process at Balakovo’s sulfuric acid units to reach design capacity in the first quarter, expanding the site’s sulfuric acid output by 13%, to 3 million mt/y.
Balakovo currently produces some 2.3 million mt/y of fertilizers, including NPK and NPS fertilizers, as well as MAP and DAP. By 2026, PhosAgro said it plans to install additional capacity at Balakovo for almost 1 million mt/y of NPK fertilizers and more than 0.5 million mt/y of DAP.
PhosAgro reported earlier this month that it plans to boost total production by 1.4 million mt/y by 2026 versus the current level (GM Dec. 8, p. 27). PhosAgro expects to reach production of 11.3 million mt companywide in 2023. If achieved, this will be a 1.8% increase on 2022’s output of 11.1 million mt (GM March 10, p. 26).