EUROCHEM INTERNATIONAL DIGEST

Deсember 2013 – January 2014№ 5 Digest

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Introducing EuroChem Agro FranceExecutive director Francois Deltour and his team of 18 introduce us to EuroChem Agro France and its work on the French agricultural market.

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EuroChem Agro Kicks Off in ChinaEuroChem hosted a kick-off party to celebrate the found-ing of EuroChem Agro Trading (Shenzhen).

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EuroChem Launches Mining Operations in Kazakhstan

In late October EuroChem launched drilling and blasting operations at its phosphate rock development project in Kazakhstan. The large-scale development of the phosphate rock deposit is carried out by Kazakhstan-based EuroChem-Fertilizers LLP.

EUROCHEM INTERNATIONAL DIGEST

Digest2 № 5Deсember 2013 – January 2014

Dmitry Strezhnev, Eddy Bruyninckx, CEO Antwerp Port Authorities, Filip Dejongh, Managing Director EuroChem Antwerpen

On 27 September Dmitry Strezhnev, CeO of euroChem, was in Antwerp for a series of high-level visits. The day started with a meeting with BASF Antwerp CEO Wouter De Geest. At noon, a lunch was organized with vice mayor Marc Van Peel, Chairman of the Antwerp Port Au-thorities and with several representatives from the Antwerp Chamber of Commerce, Flanders Investment, and the Belgian Feder-ation for Chemistry and Life Sciences Indus-tries (Essenscia). In the afternoon, Mr. Strezhnev visited the offices of the Antwerp Port Authorities, where he met Eddy Bruyninckx, CEO of the Port. They discussed EuroChem’s interna-tional strategy and EuroChem Antwerpen’s role, and especially how the Port of Antwerp could help EuroChem achieve its objectives.Mr. Strezhnev finished the day by at-tending the official inauguration of the brand new Red Star Line Museum in the presence  of  HM  King Philippe and Queen Mathilde.

Visit

Meeting in Antwerp

EUROCHEM INTERNATIONAL DIGEST

Digest3 № 5Deсember 2013 – January 2014

Interesting facts about the Jambyl Region

- The Jambyl Region is situ-ated between the huge Bet-pak-Dala desert and amazing Tien Shan mountains, stretch-ing from the Chuy Valley to the Karatau Mountains.

- In the 2nd century BC, a por-tion of the Great Silk Road, crossing the valleys of the Chu, Talas, and Asa Rivers, passed across the Region’s territory.

- Three natural reserves are operating in the Region. Berik-kara Urochishche features over 50 types of especially valuable trees and plants included in the Red Data Book, and such rare animals as argali (mountain sheep) and Indian porcupine. Karakunuz Urochishche is a botanical reserve; its area is 3.07 thousand ha. Andasai

state natural reserve features argali, Asiatic wild ass, Persian gazelle, roe deer, pheasant, and partridge populations.

- A legend claims that Lake Kokkol is inhabited by Kazakhstan’s “Loch Ness Monster”, the so-called “Aidahar (dragon), spirit of water”. According to eyewitnesses, the strange creature resembles an enormous snake, about 15 m in length with a meter-long head.

Kazakstan

Milestone

EuroChem launched mining operations at the Kok-Djon deposit in KazakhstanIn lAte OCtOber euroChem announced the launch of drill-ing and blasting operations at its phosphate rock develop-ment project in Kazakhstan. the large-scale development of the phosphate rock deposit is car-ried out by Kazakhstan-based euroChem-Fertilizers.

The initial production capacity will amount to approximately 640,000 tonnes of phosphate ore per year with first pro-duction expected to come on stream in 2014. The initial phase of the project represents invest-ments of approximately $120 million.

The Kok-Djon deposit, located in Kazakhstan’s Jambyl Region, is a key part of EuroChem’s up-stream raw material strategy. The company is currently 75% self-sufficient in phosphate rock, the main raw material used in the production of phosphate-based fertilizers, and aims to bridge

this gap by further increasing its resource base.

EuroChem’s commitment to the region is also expected to play center stage in addressing socio-economic issues in the Jambyl District. This is particu-larly the case in the towns of Karatau and Zhanatas where EuroChem plans to promote the development of regional infra-

structure by assisting with the upgrade and construction of so-cial facilities.

– EuroChem is deeply com-mitted to the Jambyl region and has already contributed over $10 million dollars to help solve some of the most pressing so-cial issues,” stressed Yerkebulan Murzagaliyev, General Director of EuroChem Fertilizers.

EUROCHEM INTERNATIONAL DIGEST

Digest4 № 5Deсember 2013 – January 2014

eurOChem usolskiy pot-ash Completed Cage Shaft Sinking

Begun in March 2012 the sinking operations pro-gressed to the shaft’s target depth of -473 meters at an average rate of 42 meters per month and were completed a full month ahead of sched-ule. Usolskiy’s cage shaft is the first shaft to be complet-ed in the Verkhnekamskoe deposit in the last 25 years.

The underground work, which now centers on the ventilation and haulage sec-tion, is being performed by

the renowned underground experts of FSUE “FF  – 30”. The freeze wall was designed and operated by Thyssen Schachtbau GmbH, the Ger-

man shaft sinking specialist involved in the freezing of shafts at both of the com-pany’s potash sites, Usolskiy Potash and VolgaKaliy.

In July euroChem an-nounced the restart of cage shaft sinking at its VolgaKaliy potash project following the successful completion of the shaft freezing stage.

The cage shaft sinking opera-tions were resumed from the 100 meter mark following the sus-pension as a result of the failure in the grouting technology used by Shaft Sinkers, a South African contractor which had been hired by the Company for the project.

EuroChem took the neces-sary steps to continue with the sinking of the cage shaft by deploying freezing tech-nology. The shaft is now being protected during the sinking effort by a freeze wall which is designed and operated by Thyssen Schachtbau GmbH, which is also involved in the sinking of VolgaKaliy’s skip shaft and the Company’s oth-er potash project, EuroChem Usolskiy Potash.

uK bASeD Global Consultancy At-kins began Audit of Surface run-Off treatment System

Following its appointment in July 2013, Atkins started its first monitoring of phosphorus concentrations in the Luga River on October 9th, 2013. In accordance with the monitoring plan, water samples were tak-en from the Luga River both upstream and downstream of the Phosphorit facility. Additionally, Atkins began the assessment of the treat-ment system adjacent to the production facility. The first results of this assement are expected in early 2014.

reView-2013

Highlights of the year

EUROCHEM INTERNATIONAL DIGEST

Digest5 № 5Deсember 2013 – January 2014

eurOChem and migao estab-lish Joint Venture in China

EuroChem and Migao Corpora-tion (TSX: MGO), a China-based specialty potash fertilizer pro-ducer, announced the establish-ment of the EuroChem Migao joint venture. The joint ven-ture will produce up to 60,000 tonnes of potassium nitrate (NK) and up to 200,000 tonnes of chloride-free complex fertiliz-ers (NPK) per annum in Yunnan, a province in southern China. EuroChem and Migao will each

own 50% of the Hong Kong-based joint venture.

Within the framework of the EuroChem Migao joint venture, a fertilizer production facility is currently being constructed in Luliang,Yunnan. A first 100,000 tonnes per annum NPK pro-duction unit is expected to be launched as early as December 2013 with a 60,000 tonnes per annum NK production unit and a second 100,000 tonnes per annum NPK line expected to fol-low in 2014.

tO CelebrAte euroChem Day and lifosa’s 50th anniversary, the company made an impressive present to the town of Kedain-iai – the Kedainiai Arena, a multi-purpose sports and entertain-ment centre.

In the enD OF AprIl, euroChem Antwerpen’s employees made a cycle tour to moscow and back.

No, this was not a 2,500-kilometer long journey across Germany and Poland. The cyclists rode 160 kilometres to a suburban district of Gent, called Moscou. To take part in the cycle tour, EuroChem Antwerpen’s employees wore new uniforms of the company.

The construction of the Kedainai Are-na began on May 25, 2012. The 5.5 thou-sand sq. m. sports centre can accom-modate 2,200 visi-tors during sports events and 3,000 visitors during con-certs. The arena can easily be trans-formed into three basketball courts and is also suita-ble for many other sports.

reView-2013

EUROCHEM INTERNATIONAL DIGEST

Digest6 № 5Deсember 2013 – January 2014

eurOChem Antwerpen cel-ebrated its corporate birth-day with Family Day.

On this day, the employ-ees of EuroChem Antwerpen came to the factory with their partners and children. The guests were given a tour of the facility, which was open to the visitors. After that, the employees and their families were treated to a rich enter-tainment programme featur-ing an exhibition, boat tours, activities for children, a theat-rical performance and even... a Russian-style music show.

yubIleIny ICe ArenA in novomoskovsk hosted the first international children’s hockey tournament organ-ised by euroChem. young sportsmen from russia, bel-gium and Finland took part in the tournament.

Phantoms hockey team from Belgium and Espoo Blues national team from Fin-

land met to play this bronze medal match. The Finns won with a score of 25–0. The cul-minating point of the tourna-ment was the final battle be-tween two Russian teams. On its own ice, Novomoskovsk’s picked team Victoria confi-dently beat its counterparts from Yamburg with a score of 7–0.

eurOChem’S CeO Dmitry Strezhnev had a meeting with bobby Jindal, Governor of louisiana, to discuss the construction of an ammonia and urea plant.

The final decision regarding the plant’s location and technical parameters will be made over the next year. However, it  is  already known that the investment can

reach USD 1.5 billion during the next four years. The final profit of the company is expected to significantly exceed the initial costs. Production of mineral fertilizers on the territory of the USA gives plenty of advantages when sell-ing fertilizers both within the country and to other coun-tries of the New World.

reView-2013

EUROCHEM INTERNATIONAL DIGEST

Digest7 № 5Deсember 2013 – January 2014

reView-2013

An InternAtIOnAl wOrKShOp “Corpo-rate Social responsi-bility and Sustainable Development in min-ing and energy Indus-tries: the Global ex-perience of the united Kingdom” was held in london. the report on euroChem’s sustaina-ble development was recognised to be the best in europe.

Founder and manag-ing director of the analyt-ical centre of sustainable development strategies, reporting and communi-

cations Great Circle, Pro-fessor of Edinburgh Uni-versity Michael Groves held up EuroChem’s report as the best case example. The company’s presentation was based on the analysis of the

company’s work with key stakeholders, and, in par-ticular, its achievements in the development of lo-cal communities through partnership and invest-ment to support educa-tion and sports.

eurOChem was one of the prima-ry sponsors of the 2013 International Chemistry Olym-piad.

In July, Moscow State University played host to stu-dents from 130 coun-tries battling it out in chemistry. Among the participants was a delegation from Bel-gium. While the Bel-gian students did not take any medals at the event, once back home, the group and their professors were given the chance to take a closer look at EuroChem operations in Antwerp. Three students, four profes-sors and local chem-istry Olympiads staff, attended a presenta-tion on the history and production pro-cesses at EuroChem Antwerpen and were given a guided tour of the installations.

bOyS from yamburg team, Kingisepp, and from blues Juniors, espoo, played a  friendly match.

The match was intense. But during this sports battle luck favoured the Russian hockey players more often. They were leading by a wide margin in all of the three periods and won the match con-fidently by a score of 12–3. After the final whistle, the Finnish players said they had given it their best but the opponents were prepared better. They in-vited the Russian boys to Finland and expressed the hope that they would come back to win at the next tournament.

EUROCHEM INTERNATIONAL DIGEST

Digest№ 58 Deсember 2013 – January 2014

Introducing EuroChem Agro France SASrepreSenteD by its ex-ecutive director François Deltour, euroChem Agro France SAS has a team of 18 employees, 11 of them working in sales, logistics, marketing and administra-tion in its levallois-perret headquarters outside par-is, and seven as technical consultants and sales rep-resentatives in the French provinces.

Firmly established in France, EuroChem Agro France dis-tributes a wide range of com-modities (e.g. AN and CAN) and specialties (ENTEC and Nitrophoska). Starting from January 2014, the French portfolio will be expanded with the commodities UAN, Urea, DAP and MAP.

The attractive and dynam-ic French agricultural market is comprised of approximate-ly 500,000 farms each aver-aging some 55 hectares (ha), and produces a large variety

of crops: field crops, grass-land, vine, and vegetable and fruit production. 54 % of the whole French territory is used for agriculture and more than 10 million ha. are dedicated to intensive production with high nitrogen requirements.

“On this market, ENTEC and Nitrophoska are well known brands with an excellent image of quality and relia-bility. Our team of experi-enced technical consultants promotes these products to the sales force of our clients, who are selling them to the end users. We are providing specific application advice for various crops, via person-al visits, regional meetings and an important number of field trials conducted on the entire French territory”, says marketing manager Pierrick Lefrère.

EuroChem Agro France is also regularly participating in national and regional fairs,

such as the “Sommet de l’Ele-vage”, an important interna-tional fair for cattle breeders from all over the world, which takes places every year in Oc-tober in Clermont-Ferrand, right in the center of France.

When asked about the structure of the company’s clientele, director François Deltour explains: “Our cus-tomers are mainly coopera-tives organized as large and influent buying groups. Our sales/commercial strategy consists in working primarily with these key accounts. Only ten of them account for near-ly 80 % of the total tonnage delivered by our company”.

To all of its customers, the French logistical team pro-poses specific solutions ranging from barge or ship deliveries from Antwerp or  Ludwigshafen for bulk products to railway trans-ports and truck deliveries for smaller shipments.

Vine growing in the Bordeaux region

Director François DeltourMarketing Manager Pierrick Lefrère

Profile

EUROCHEM INTERNATIONAL DIGEST9 № 5 DigestDeсember 2013 – January 2014

together

EuroChem Agro Kicks Off in ChinaeurOChem hosted a kick-off party to celebrate the founding of euroChem Agro trading (Shenzhen) Co., ltd. the event, held at the Shenzhen Futian Shangri-la hotel on Octo-ber 15-16, allowed custom-ers and business partners to get further acquainted with euroChem, its prod-uct line, and sales team as well as its commitment to the vibrant Chinese agri-cultural market.

Close to 120 guests were welcomed by EuroChem Agro Shenzhen Managing Director Zhenjun Ding to the event. Guests included major customers such as SinoChem and CNCCC, busi-ness partners from some of the leading Chinese trading ports such as the Chiwan and Wuhan ports, some of China’s most renowned professors and experts from agricultural science

universities and institutes, and members of the press and specialised agricultur-al news. Not wanting to miss this milestone event, Valery Rogalskiy, EuroChem Sales Director, as well as EuroChem Agro Managing Director Rudolf von Plet-tenberg and Sales Director Wolfgang Jung made the trip to Shenzhen and were on hand to present Euro-Chem and its products.

The evening began with a cocktail reception on the red carpet. All guests were invited to leave their mark by signing a large board  – many were pleased and visibly honoured to do so. After an initial chance to get to know each other, guests were treated to a diverse evening of Chinese entertainment full of sur-prises. The live band got the evening off to a good start and some guests were

even brave enough to take to the stage and sing along. For the traditional Kung Fu show, volunteers had to re-peat key movements and stances shown by the fight-ers live on the stage. This would remain one of the evening’s highlights.

The next morning, guests were treated to anoth-er Chinese tradition with a demonstration of face

EuroChem Agro Managing Director Rudolf von Plettenberg

Guests joining the band on stageTraditional Kung Fu show

EUROCHEM INTERNATIONAL DIGEST

Digest№ 5Deсember 2013 – January 201410together

changing, known as “Bian Lian” in Chinese, an impor-tant aspect of Chinese Si-chuan opera. Performers use “face changing tech-niques” on the stage and transform it into a special art with stunning skills. Per-formers wave their arms and twist their heads while their painted masks change

again and again and again. This demonstration was symbolic of the company’s promise to customers: while we might have a new logo, our team, the high level of service and the outstanding product quality have not changed. A more modern presentation followed the ancient Chinese dramatic

art display. Valery Rogal-skiy introduced EuroChem while Rudolf von Pletten-berg presented EuroChem Agro GmbH and its prod-uct strategy. Zhenjun Ding followed with a discussion on the future opportunities and prospects of EuroChem Agro Trading Shenzhen. Professor Zhang from the

China Agricultural Universi-ty then provided those in at-tendance with an overview of the Chinese fertiliser in-dustry. The colourful event culminated in a perfectly or-ganised and highly creative fashion show, inspired by one bright idea: the models wore surprisingly flattering outfits, which were tailored

from old K+S Nitrogen and new EuroChem Agro fertil-iser packaging.

At the end of the two-day event, all guests left inspired and thanked the hosts for their perfect planning and organising with several of China’s agricultural press subsequently reporting on the successful kick-off event.

Michelle Rao (Assistant & Administration )Graduated from Jiangxi Normal University

Xiangming Zeng (Regional Manager)Senior agronomist; Master of Plant Nutrition of Huazhong Agricultural University

Zhenjun Ding (Managing Director)Extensive experiences in fertilizer business, graduated from China Agricultural University

Prof. Dr. Yando Xiao (Director of Technical Support)Ph.D. from China Agricultural University, MSc of Universitat Karlsruhe (TH)

Xiaobin Fan (Regional Manager)Senior agronomist; graduated from Shandong Agricultural University

EuroChem Agro Trading Shenzhen

EuroChem Agro Trad-ing Shenzhen was founded in July 2013 through the acquisi-tion of K+S Nitrogen by EuroChem. The core team stayed on to form the backbone of EuroChem Agro’s presence in the dynamic Chinese market. From just 100,000 tonnes a few years ago, approxi-mately 200,000 tonnes of Nitrophoska and ENTEC are now sold annually in China. To-gether, the performance of our products and our successful market-ing efforts have made Nitrophoska and ENTEC among today’s most popular brands among Chinese farmers. All EuroChem Agro Trading Shenzhen employees have University degrees and excellent education background