Phosagro, one of the world´s biggest producers of mineral fertilizers, will in 2012 invest almost seven billion RUB (€160 million) in the development of the Apatit company, a key enterprise in the Kola Peninsula.
The investments will be placed both in mine development and new infrastructure, the company´s Board of Directors decided in a meeting on 30 December. Phosagro will develop new regional mining capacities, as well as expand the capacities of existing facilities, among them the Kirovsk and Rasvumchorr mines, a press release from the company informs. In addition comes the modernization of regional processing plants and upgrades of road- and rail-based infrastructure.
An Apatit processing plant in Apatity, the Kola Peninsula (photo: Atle Staalesen)
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The investments come as Phosagro steps up its bids for full control over Apatit. As previously reported, the Phosagro intends to boost its stake in the company to at least 75 percent, up from today´s 50 percent.
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A part of this process is the company´s acquisition of a 51 percent stake in the Nordic Rus Holding from Akron. The Nordic Rus Holding was established by Akron and the Norwegian company Yara in 2007 in a bid to join efforts in the Russian fertilizer industry, and was managed by the two companies on a 51-49 percent share basis. The Nordic Rus Holding controlled a total of 10,3 percent of Apatit.
In addition, Phosagro is eager to take over control of the Russian state´s 20 percent of Apatit, a stake which is believed to be subjected to privatization in the near future.
Phosagro is controlled by businessman and senator for Murmansk Oblast Andrei Guryev. He is believed to own more than a 80 percent share of the company.
