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Uralkali Trading and the Members of Association for Coordination of Border Trade of the China Chamber of Commerce for Metallurgy, Mining and Chemical Industries Signed a Memorandum of Understanding

06.06.2019

A Memorandum of Understanding has been signed by the following major entities: Uralkali Trading  a wholly-owned subsidiary of Uralkali (the Company; Moscow Exchange: URKA), one of the worlds largest potash producers  and the Chinese companies Suifenhe Kaiyuan Economy and Trade Co., LTD, Manzhouli Tianyue Trading Co., LTD, Suifenhe Longsheng Economic and Trade Co., LTD, Suifenhe Guangcheng Economic and Trade Co., LTD  Manzhouli AIX International Trading Incorporation  the members of the Association for Coordination of Border Trade of the China Chamber of Commerce for Metallurgy, Mining and Chemical Industries.

The documents were signed during St. Petersburg Economic Forum by Alexander Terletsky, member of the Management Board and CEO of Uralkali Trading on the one side and the directors of the Chinese importer companies, on the other one. The signing ceremony was attended by Dmitry Osipov, Uralkali CEO, Alexei Shilo, Deputy CEO and Head of Transport Services of Russian Railways, and Alexander Orlov, Director of the Department for Chemistry, Technology and Bioengineering at the Ministry of Industry and Trade of Russian Federation.

The newly confirmed memorandums, operative from 2019-2023 inclusive, provide the parties with the ability to purchase and supply potassium chloride, produced by Uralkali. The product will be shipped by rail via land border crossings using special mineral wagons.

The amount to be supplied to each of the importers under the terms of the documents may amount to 200.000-250.000 tonnes of potassium chloride per year.

Dmitry Osipov, Uralkali CEO, commented:

 The geographic location of Uralkali provides the Company with many advantages compared to other potash market players concerning railway shipments to China  largely due to our effective cooperation with Russian Railways.

The agreements signed with our Chinese partners are the evidence of Chinas importance as one of the Companys key consumer market. We welcome the signing of these Memorandums and look forward to mutually beneficial cooperation with our partners in the region.

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 plants in the towns of Berezniki and Solikamsk (Perm Region, Russia). Uralkali employs ca. 12,000 people in the main production unit. Uralkalis shares are traded on the Moscow Exchange.

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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.