Uralkali Announcement

19.11.2014
Uralkali Announcement

Uralkali (LSE: URKA; the Company) announces further information regarding the development of the accident at the Solikamsk-2 mine.

A sinkhole with a diameter of 30-40 metres has been detected to the east of the Solikamsk-2 production site, outside the metropolitan area. To ensure safety in the area of potential soil subsidence, access to the site has been prohibited. 

The Solikamsk-2 minefield is adjacent to the Solikamsk-1 minefield. Together with geologists from leading scientific establishments, the Company continues to closely monitor these minefields and will provide further updates on the situation in due course.

Alexander Baryakh, General Director of the Mining Institute of the Urals Branch of the Russian Academy of Science:

The site where the inflow of brine has been detected completely overlaps with the site of the incident which happened at Silvinit Solikamsk-2 on 5 January 1995. This enables us to conclude that the 1995 accident and its consequences are directly linked to the accident on 18 November 2014. There is currently no threat to the surrounding populated areas.

Dmitry Osipov, Uralkali CEO:

The Company continues to work closely with the relevant state authorities and scientific experts. The accident is not catastrophic to the Company’s operations or people living in the area. The impact is being localised and we have a clear plan to tackle the situation promptly. We will take all necessary measures to minimise the impact of the incident on the Company, our investors, partners and the inhabitants of Solikamsk and the surrounding area. At the same time, we will consider the possibility of bringing forward the commissioning of new mining capacities at Ust-Yayvinsky and Polovodovsky blocks.

Uralkali (www.uralkali.com) is one of the world’s largest potash producers and exporters. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs ca.11,300 people (in the main production unit). Uralkali’s shares and GDRs are traded on the Moscow Exchange and London Stock Exchange, respectively.

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Cardinal rules

Smoking in mines is prohibited.
Work at heights without wearing a safety harness is prohibited.
Work in electrical installations under voltage is prohibited.
It is forbidden to perform work and stay in the bottomhole zone during the operation of the mining machine.
Loading and unloading operations when people are in the danger zone are prohibited.
Working in underground mines with unsecured and/or unassembled roofing is prohibited.
It is forbidden to carry out repairs and maintenance of conveyors without disconnecting from energy sources, use of conveyors for transfer of people and goods (materials and/or equipment), crossing (either above or under) operating conveyors by employees are not allowed.
It is forbidden to carry out welding and flame work in underground mines and mine buildings without the necessary safety measures preventing fire.