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Uralkali Announces 1Q 2015 Production Results

07.04.2015
Uralkali Announces 1Q 2015 Production Results

Uralkali (LSE: URKA; the Company), one of the world’s largest potash producers, has today announced its production results for January-March 2015. Uralkali produced 2.70 million tonnes of potassium chloride (KCI) in 1Q 2015, which represents an approximately 8% decrease compared to the corresponding period of the previous year.

1Q 2015 1Q 2014

2.70 million tonnes of KCl

2.93 million tonnes of KCl

In 1Q 2015, the output declined compared to the same period last year as a result of the decrease in Uralkalis production capacity following the accident at the Solikmsk-2 mine, and lower levels of demand in the key markets. The spring high water season expected from the middle of May to the end of June, as well as the success of the measures implemented to prevent brine inflow into the mine will impact the conditions in the Solikamsk-2 mine. Uralkali cooperates with leading Russian and international institutes to find technical solutions, which would allow the Company to continue backfilling the worked-out areas of the mine. Uralkali may review its annual output target for 2015 currently set at 10.2 million tonnes of KCI depending on the demand in the market and further developments at the Solikamsk-2 mine.

Uralkali (www.uralkali.com) is one of the worlds largest potash producers and exporters. The Companys 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). Uralkalis 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.