Uralkali Informs About an Accident by Sinkhole Filling

12.09.2012
Uralkali Informs About an Accident by Sinkhole Filling

Uralkali (LSE: URKA) informs that an accident happened on 12 September 2012 at 3:30 am local time during the repair works at the sinkhole which had appeared near the non-functional Berezniki Mining Construction Office on 4 December 2011. The sand and gravel mix that had been filled in the sinkhole subsided, which caused the death of a Uralkali Group’s worker.

The Company expresses its deep condolences to the worker's family. The family will be provided with financial assistance.

Currently the repair works at the sinkhole have been suspended. In order to inquire into the causes of the accident a commission has been created, which includes among others the representatives of the Federal Service for Ecological, Technological and Nuclear Inspectorate (Rostechnadzor), the Galurgia Project Institute and Mining Institute of the Urals Affiliate of the Russian Academy of Science. Around the sinkhole area detailed surveillance has been organised. The occurred subsidence will not affect the Company's operational activities.

Uralkali (www.uralkali.com) is one of the world’s largest potash producers with a market share of about 20%. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk (Perm Territory, Russia). Uralkali employs ca. 12,500 people (in the main production unit). Uralkali’s shares and GDRs are traded on the RTS-MICEX and LSE, 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.