EuroChem Group AG’s proposed project for the second phase of its Usolskiy potash project, south of Berezniki, has secured approval by Russia’s state expert review office Glavgosexpertiza, Interfax reported this week.
The project involves the construction of a new underground mine with capacity to mine 12.6 million mt/y of sylvinite ore, a processing plant, together with additional transport and utilities infrastructure, according to the report.
EuroChem has still to take a final investment decision on the project, but plans to make the decision this year.
The main difficulty for the new mine development on the Verkhnekamskoye deposit – on which the existing Usolskiy potash mining operation is based – is easy solubility of the salts and the water content of the strata above the salt massif, according to the report, citing a Glavgosexpertiza media statement. As a consequence, the appropriate design solutions have to be adopted for the safe and reliable operation of mining facilities, including to rule out accidental flooding of the mine,” the agency said.
EuroChem plans to undertake the project in 2023-30, according to the report.
The existing Usolskiy Potash Plant produced 2.39 million mt of potash last year, and in February 2022, EuroChem said the operation was on track to reach 2.7 million mt/y capacity “soon” (GM Feb 25, p. 32). According to this week’s report, that capacity will be reached in 2023, with capacity set to rise to 3.7 million mt/y-4.0 million mt/y by 2026 and – with the second phase – to 4.7 million mt/y after 2027.
EuroChem produced 228,000 mt/y last year at its other potash operation, the VolgaKaliy Potash Plant in Russia’s southern Volgograd region, and also made the first commercial sales from the operation, which has been dogged by geological issues impacting development.
The group has also been conducting exploration work at a third potential third potash project outside Saratov in southwest Russia, the so-named SaratovKaliy Potash Project.