Uralkali Announcement

29.01.2015
Uralkali Announcement

Uralkali (LSE: URKA; the Company) announces that it has been informed of the results of the technical investigation into the causes of the accident at Solikamsk-2 on 18 November 2014 from the Commission of the Federal Environmental, Technological, and Nuclear Supervision Service of Russia (Rostechnadzor).

The commission analysed the investigation materials from the 1995 accident at the Silvinit Solikamsk-2 mine; the results of the collapse area monitoring by Silvinit, and later Uralkali, in conjunction with mining institutes for almost 20 years; and the implemented measures aimed at minimising the consequences of the accident and prolonging the mine life for as long as possible. The commission engaged expert organisations and scientific institutes.

Based on the findings of the expert group, the commission concluded that the inflow of fresh water into the mining area of Solikamsk-2 in November 2014 was the consequence of the mass collapse of rock in the mine during the accident and earthquake in 1995. The investigation found that the measures implemented by Silvinit and Uralkali to minimise the consequences of the 1995 accident had prolonged the life of the Solikamsk-2 mine by almost 20 years. The commission also came to the conclusion that it had not been possible to prevent the negative implications of the 1995 accident.

The Rostechnadzor commission recommended the implementation of a set of measures aimed at localising the impact of the 2014 accident and also the development of procedures for earlier detection of signs of water and brine inflows in mining areas.

In co-ordination with Rostechnadzor and the recommendations of the scientists, Uralkali continues to implement a number of measures to localise and minimise the consequences of the accident.

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.