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EuroChem signs agreement to acquire Serra do Salitre phosphate project in Brazil

  • Upstream project in Minas Gerais to add 1 MMT to EuroChem’s annual phosphate production capacity
  • Project approximately 50% complete, with the mine and beneficiation plant already producing positive EBITDA
  • Fertilizer production due to come on stream in 2023 and reach full capacity in 2024
  • Acquisition to further strengthen distribution capabilities in region following recent integration of Fertilizantes Tocantins into EuroChem Group
  • Deal value of US$410 million, subject to final purchase price adjustments


Zug, Switzerland, August 1, 2021 – EuroChem Group AG (hereinafter “EuroChem” or the “Group”), a leading global fertilizer company, announces the signing of an agreement to acquire the Serra do Salitre phosphate project in Brazil, strengthening the Group’s production and distribution capabilities in one of the world’s most important crop nutrient markets.

Serra do Salitre is an advanced-stage integrated upstream phosphates project in Minas Gerais, southeastern Brazil. It comprises an open pit phosphate mine with more than 350 million metric tonnes (MMT) of reserves; and a 1 MMT-per-year manufacturing plant for MAP/NP and SSP/TSP products which is due to come on stream in 2023.

“This expansion will allow us to reduce dependency on third-party phosphate supplies, and also creates the potential for phosphates and complex fertilizer production in Brazil,” said EuroChem Group CEO Vladimir Rashevskiy. “It significantly improves our competitive position in Brazil, and enables us to leverage the extensive blending and distribution capabilities brought by the acquisition of Fertilizantes Tocantins, which we completed last year,” he added.

The mine and beneficiation plant are already operating, producing around 500-600 KMT of phosphate rock and generating positive EBITDA from third-party concentrate sales. The project will further include a sulphuric acid plant, a phosphoric acid plant, and a 0.4 MMT storage facility for granulated fertilizer including urea and muriate of potash, among other nutrients.

The US$410 million deal will, on closing, see EuroChem Group assume full ownership of all Serra do Salitre assets from Yara International ASA. The remaining development capex to reach full capacity is close to the deal value, with the project expected to reach its target output in 2024. The acquisition is subject to, among other things, approval from the Brazilian antitrust authority (CADE). After deal closing, EuroChem undertakes to conclude the construction works in Salitre.

Brazil is one of the world’s biggest fertilizer markets, and phosphates are considered to be one of the three primary nutrients, along with nitrogen and potassium, that plants require for healthy growth. Due to nature of the crop mix in Brazil – 44% of which is soya – Brazilian demand for phosphate-based fertilizers is higher than in other regions, with half of consumed phosphate fertilizers within the country covered by imports.

Serra do Salitre is strategically located within Brazil’s agricultural heartland, where domestic demand is robust. The phosphates it supplies will slot seamlessly into EuroChem’s production and distribution operations, allowing the Group to serve its thousands of customers with even more high-quality fertilizers in a timely fashion. Applying the right fertilizer on time throughout the growing season is critical to the success of crop harvests.

When brought on stream and fully ramped up, Serra do Salitre will add 1 MMT to EuroChem’s existing annual phosphate and complex product output of 5 MMT. The Group currently has two phosphate mines: the Kovdorskiy GOK facility in northern Russia and EuroChem Fertilizers in Kazakhstan, and manufactures premium-quality commercial MAP, DAP, NP and feed phosphates at several production sites in Russia and Lithuania.


About EuroChem Group AG


EuroChem is a leading global producer of nitrogen, phosphate and potash fertilizers. The Group is vertically integrated with activities spanning mining to fertilizer production, logistics, and distribution. EuroChem launched potash production at its Usolskiy site in 2018 and has since ramped up output to Phase One operational capacity of 2.3 MMT per annum. The Group continues to develop a second greenfield site at VolgaKaliy in Russia. Headquartered in Zug, Switzerland, the Group operates production facilities in Europe, Asia and the CIS, employing more than 27,000 people.

For more information, please visit www.eurochemgroup.com. Any media or analyst enquiries should be directed to the appropriate EuroChem Group contact, as listed below:


Oxana Kovalenko

Head of Investor Relations

EuroChem Group AG


David Nowak

Deputy Head of Communications

EuroChem Group AG

Vladimir Torin

Head of Public Relations

MCC EuroChem


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