UC Rusal and Phosagro sign contract for fluoric salts supply until 2034.
M2 EQUITYBITES-February 8, 2012-UC Rusal and Phosagro sign contract for fluoric salts supply until 2034(C)2012 M2 COMMUNICATIONS http://www.m2.com
Russian aluminium producer UC RUSAL (LSE:PHOR) (Euronext:RUSAL) (HongKong:0486) announced on Wednesday an agreement for PhosAgro (LSE:PHOR), a phosphate-based fertiliser producer in Russia, for the supply of fluoric salts until 2034.
The company said PhosAgro plans to invest RUB2.2bn between 2012-2015 to increase production at Ammophos, a PhosAgro subsidiary in Cherepovets (Vologda Region), by 12 thousand tons per year. Supplies of fluoric salts to RUSAL are expected to reach 35 thousand tons per year commencing in 2015.
PhosAgro's long-term sales of fluoric salts are guaranteed with this agreement with RUSAL, they will also invest in expanding its production capacities and enhance the environmental security of Ammophos, the company said adding the parties are also considering implementing a similar arrangement at PhosAgro subsidiary Balakovo Mineral Fertilizers in Balakovo (Saratov Region).
Prices will be determined by a formula that includes an investment component.
(USD1 = RUB29.75)
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