Bright Prospects for Be­laruskali

One of the world’s big­gest pro­duc­ers of potash fer­til­iz­ers is de­ter­mined to ex­pand pro­duc­tion and launch new prod­ucts

Economy of Belarus - - INDUSTRY LEADERS - Anna KOT, Econ­omy of Be­larus Mag­a­zine

Mr Kiriyenko, 2011 is com­ing to an end. How do you eval­u­ate the com­pany’s per­for­mance this year?

We al­ready see that 2011 was a good year for the com­pany. Ac­cord­ing to our es­ti­mates, this year the pro­duc­tion of muri­ate of potash (MOP) will rise to 8.8 mil­lion tonnes vs. 8.6 mil­lion tonnes in 2010. The ex­port of potash fer­til­iz­ers will also in­crease to ex­ceed 7.5 mil­lion tonnes (6.8 mil­lion tonnes in 2010).

Be­laruskali is among Be­larus’ most lu­cra­tive as­sets. The com­pany holds about 16% of the global potash mar­ket and sells potash fer­til­iz­ers to 65 coun­tries world­wide. Ma­jor in­vestors from In­dia, Rus­sia and China are go­ing to ex­tra­or­di­nary lengths to get their hands on the com­pany de­spite the hefty price of $30 bil­lion. This year has been one of the most suc­cess­ful years for the com­pany. Be­laruskali has signed prof­itable sup­ply con­tracts and ex­tended its reach into new mar­kets. The com­pany has plans to in­crease the vol­ume and va­ri­ety of pro­duc­tion. Valery KIRIYENKO, Be­laruskali Di­rec­tor Gen­eral, tells the Econ­omy of Be­larus Mag­a­zine about the com­pany’s pri­or­i­ties, potash mar­ket trends and com­pe­ti­tion with Ural­kali and the fu­ture Slavkali.

This will gen­er­ate over $3 bil­lion in for­eign currency rev­enues, up 1.5 times over last year.

This year the com­pany ex­panded into some new mar­kets, in­clud­ing Aus­tralia, Bar­ba­dos, Burk­ina Faso, Hon­duras, Cuba, Myan­mar, Peru, Saudi Ara­bia, Suri­nam, Tai­wan, Trinidad and Tobago, and Turk­menistan. The anal­y­sis of the medium-term and long-term de­vel­op­ment prospects of the potash mar­ket has re­vealed an in­creas­ing de­mand for potash chlo­ride, espe- cially in Brazil, Rus­sia, In­dia, and China, pro­vided there is no new fi­nan­cial tur­moil in the global econ­omy.

The in­creased out­put con­trib­utes to a bet­ter fi­nan­cial stand­ing of the com­pany. Our com­pany earned Br3.1 tril­lion in profit in H1 2011, more than any other joint stock com­pany in Be­larus, ac­cord­ing to the Fi­nance Min­istry.

The in­crease in prof­its, rev­enues, works and ser­vices trans­lated into more tax rev­enues and pay­ments into the bud­get. Be­laruskali duly ful­fills its tax obli­ga­tions. In Jan­uary-au­gust 2011 taxes to be paid from rev­enues and prof­its rose by Br1.8 tril­lion, rev­enue taxes rose 2.1 times, profit taxes soared 3.6 times.

The com­pany is im­ple­ment­ing a large-scale in­vest­ment pro­gram to up­grade, ren­o­vate and con­struct new pro­duc­tion fa­cil­i­ties. In Jan­uary-septem­ber 2011, Be­laruskali’s cap­i­tal in­vest­ments made Br1.8 tril­lion. The com­pany chan­nels in­vest­ments into ren­o­vat­ing the fixed as­sets which de­pre­ci­a­tion (Br10.5 tril­lion in bal­ance-sheet value) re­duced from 73.8% in 2005 to 55.2% on 1 Septem­ber 2011.

Be­sides, the com­pany is try­ing hard to cut down on imports.

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