At a recent meeting, the Board of Directors of PhosAgro, a leading global producer of phosphate mineral fertilizers, reviewed the progress of the company’s key investment projects.
PhosAgro CEO Mikhail Rybnikov reported on the implementation of the company’s 2023 development strategy and outlined key areas for 2024. He highlighted the smooth progression of creating new production facilities and modernizing existing ones as part of the Development Strategy to 2025.
“In Cherepovets and Volkhov, projects are underway to increase apatite concentrate processing by more than 400 thousand tonnes. Additionally, the construction of the main phosphogypsum transport conveyor and maintenance of sulfuric acid production capacity continue in Cherepovets.
In Balakovo, the third phase of production facility development, which includes creating a flexible MAP/DAP/NPS/NPK fertilizer production scheme, is actively progressing. The SK-20 sulfuric acid unit has reached its design capacity, boosting sulfuric acid production by 350 thousand tonnes annually. Construction of the SK-20/1 sulfuric acid unit has begun, with commissioning expected by the end of 2025. Upgrades to the phosphogypsum conversion unit and the FOK-2 mineral salts plant are set to increase feed monocalcium phosphate output by 53,000 tonnes annually, with target capacity expected in Q3 2024. By 2025, output at the Balakovo plant will increase by nearly 1 million tonnes, producing 3.5 million tonnes of fertilizers for Russian farmers. Additionally, the development of the ore resource base continues, with a new mine at the Rasvumchorr Plateau deposit and planned underground mining at the Gakman section of the Yukspor deposit at the Kirovsky mine. The redesign of ANOF-3 will boost the beneficiation plant’s capacity by nearly 12% to 10.5 million tonnes of apatite concentrate annually.
The long-term development program and significant capital expenditure, with a record RUB 73 billion planned for 2024, are enabling new production records. In Q1, the company increased agrochemical product output by almost 7% to a record 3 million tonnes. PhosAgro expects to surpass 11.5 million tonnes in production for the year.
PhosAgro’s achievements in operational and social spheres and its commitment to ESG principles have been recognized by the business community. The company won two categories in the Russian national competition “Flagship Businesses: Dynamics, Responsibility, Sustainability – 2023” and received the national award “Leaders of Responsible Business,” established by President Vladimir Putin, at the RUIE congress in April.
Chairman Viktor Cherepov congratulated the Kirovsky Mining and Beneficiation Plant workforce for producing its 750 millionth tonne of apatite concentrate, a testament to the dedication of generations of miners and ore-enrichment workers, which has ensured the country’s food security for nearly a century.
The Board reviewed PhosAgro’s Q1 2024 financial results, including interim consolidated financial statements under IFRS. Shareholders are invited to choose one of three dividend options (RUB 165, RUB 234, or RUB 309 per ordinary share) or abstain/vote against each option. The Board recommended 11 July 2024 as the record date for receiving dividends, with the annual general meeting of shareholders to be held in absentia on 30 June 2024.
Reports on occupational health and safety, key risk management in Q1 2024, cybersecurity, and the implementation of the information technology strategy were also reviewed. The Board proposed JSC Unicon as the auditing firm for 2024 under Russian Accounting Standards.
New members of the Management Board were elected, including CEO Mikhail Rybnikov, Deputy CEO for Corporate and Legal Affairs Alexei Sirotenko, and Chief Economic Officer Dmitry Morozov. Consent was given for Management Board members to hold concurrent positions in other organizations.
