Annual Report 2011   English  |  Russian

Our strategy

Our strategy is based around six core themes:

Building value through our vertically intergrated business model

Strategic priorities

Vertical Integration

1. Mining projects – under implementation.

2. Production – 5.8 million tonnes of commodity products in 2011.

3. Logistics – own transshipment facilities with a capacity of 5 mn tpa and 2,500 railcars and tanks.

4. Distribution – sale of 4 mn tpa of products through own distribution network.

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Objectives

Own raw material production

Phosphates (apatite concentrate)

2012 (capacity): 1 mn tpa.

2017 (capacity): 2 mn tpa.

Potash (potassium chloride)

2016 (capacity): 1 mn tpa.

2018 (capacity): 2 mn tpa.

Read more about mining projects

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Improving operating results through the construction of new production facilities

Strategic priorities

Expansion of production capacity at Veliky Novgorod site

1. Construction of a new urea unit.

2. Construction of a new ammonia unit.

3. Integrated processing of apatite-nepheline ore.

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Objectives

Performance boost

Urea: up to 1 mn tpa in 2014.

Ammonia: up to 1.8 mn tpa in 2015.

Innovative operations to process nepheline concentrate and extract rare-earth elements.

Read more about production

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Focusing on the markets that matter to increase high-end sales

Strategic priorities

Product sales on best terms and at maximum price

1. Development of own sales networks and trading companies.

2. Reinforcement of positions in key sales markets.

3. Improving sales flexibility and increasing supplies to high-margin markets.

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Objectives

Expansion to sales markets with strong demand and world-price premium

Read more about our competitive strengths

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Raising funding for our ambitious investment programme

Strategic priorities

Raising funds for a large-scale investment programme

1. Monetisation of non-core assets.

2. Attracting strategic investors to implement mining projects.

3. Using a wide range of borrowing instruments.

4. Increasing cash flow from operating activities.

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Objectives

Reducing financial risks and implementing balanced cash policy in financial management given considerable capital expenditure

Read more about our business segments

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Enhancing our profile through transparency and strong governance

Strategic priorities

Improving the investment case

1. Streamlining the corporate structure.

2. High dividend yield.

3. High Corporate governance standards.

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Objectives

Higher shareholder value

Read more about corporate governance

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Adopting a sustainable approach to our future

Strategic priorities

Higher personnel, social and environmental policy standards

1. Greater social security for employees.

2. Ample opportunities for professional growth.

3. Comfortable and safe working environment.

4. Preservation of favourable environmental conditions in the regions where production facilities are located.

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Objectives

Building a performance-oriented team of professionals
High industrial and environmental security standards

Read more about sustainability

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