Offer to the investor
Total project cost: 13.5 bln rub.
Capital planned to be raised: 500 mln rub and above.
Investment purposes: construction and equipment of the enrichment facility
Available investment options: any possible investment options will be considered
Internal rate of return (IRR): 28%
Planned payback period: 6 years
Russia is one of the richest countries in the phosphate mineral resources. In Krasnoyarsk Region, the cumulative volume of the explored apatite and phosphorite ore stocks exceeds 5,758 tonnes. In the Russian Federation, phosphate fertilizer production has been consistently growing at the CAGR of 5%. Being 2-3 times lower than the average Russian use rate, the fertilizer use rate on the potential sales markets manifests the high growth potential for the product. The main manufacturers are concentrated in the European part of Russia; the market of the Siberian Federal District remains free.
The project suggests organizing the extraction of phosphate material (phosphate and nitrogen-phosphorus fertilizers) to be used in agriculture.
After the project is commenced, the production facility may be located in the following regions:
– The north of Krasnoyarsk Region (Esseyskoe and Maganskoe fields near Khatanga village) – Phosphorites P4O10 of the exploration categories A+B – 3.28 million tonnes, C1+C2 – 3,225 million tonnes, P1+P2 – 818 million tonnes.
– South of Krasnoyarsk Region (Yeniseisko-Chadobetskaya Province, East-Sayan Province, Motygino District) – apatite material P2O5 of the exploration category C1+C2 – 317 million tonnes, P1+P2 – 1,395 million tonnes.
At the moment, the project is at the implementation stage. The general apatite and phosphorite fertilizer production flowchart has been developed, the main sources of raw materials have been assigned, the basic financial parameters and the product sales channels have been identified.
Depending on the sufficiency of the assets and finance owned by the investor, the Yenisey Siberia Development Corporation may offer the best fitting project financing plan involving the governmental financial support options.
The project was developed by Strategy Partners group with the support of Sberbank.