EuroChem to use northern sea route

Moscow, July 7, 2011, EuroChem today announced that on July 10th and 12th, two Murmansk Shipping Company bulkers will leave the Port of Murmansk and head east for Jingtang, northern China. This will mark the first time EuroChem cargo ships take the Northern Sea Route. The ships will be delivering 44,000 tonnes of iron ore concentrate from EuroChem’s Kovdorskiy mine.

Iron ore concentrate is the main raw material used by the metal industry to produce cast iron. China, the leading steel producer globally, represents EuroChem’s main iron ore export market.

Igor Nechaev, EuroChem Logistics Director, commented: “EuroChem plans to use the Northern Sea Route for deliveries to China on a regular basis. Using this passage, rather than the traditional routes via the Suez Canal or the Cape of Good Hope, will cut delivery time in half and significantly bring down transportation costs.”

The total distance between Murmansk and the ports in northern China is 6,900 miles, via the Northern Sea Route. The Arctic-class dry cargo ships Mikhail Kutuzov and Dmitry Pozharsky, both with a deadweight of 23,000 tons, will be escorted by the Vaygach, a nuclear-powered ice breaker. The cargo ships will cross the Arctic Ocean basin, pass the Bering Strait and make their way along the coasts of Russia, Japan and South Korea. The Vaygach will escort the cargo ships for about 2,000 miles; from the Kara Strait to just off Wrangel Island. The ships are scheduled to arrive at their final destination within the first ten days of August.

With an approximate value of USD 8 million, the iron ore concentrate will be used by large metals companies in the north east of China. EuroСhem plans to boost iron ore concentrate transhipment through the Murmansk Port by up to 3 million tonnes in 2012, thanks to strategic agreements between EuroChem, the Murmansk Commercial Sea Port, Murmansk Shipping Company and FSUE Atomflot.

Vladimir Torin
Head of Public Relations
Phone: +7 (495) 795 2527 ext. 1440
Fax: +7 (495) 960 2293

Olivier Harvey
Head of Investor Relations
Phone: +7 (495) 795 2527 ext. 1519
Fax: +7 (495) 960 2293

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