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Uralkali is a Russian potash fertilizer producer and exporter. It is traded on the London Stock Exchange and Moscow Exchange using the symbol, URKA. The Company’s assets consist of 5 mines and 7 ore-treatment mills situated in the towns of Berezniki and Solikamsk . Uralkali employs ca.11,300 people .The company produces standard and granular potassium chloride and supplies it to over 60 countries, with the major markets including Brazil, India, China, Southeast Asia, Russia, USA, and Europe. In 2013 Uralkali produced 10 million tonnes of potash Uralkali develops Verkhnekamskoye field of potassium and magnesium salts, world's second largest in terms of potash ore reserves. The Company’s total ore reserves total approximately 8.2 billion tonnes. Uralkali holds the development licences for the Ust-Yayvinsky and Polovodovsky blocks at the Verkhnekamskoye field, which contain ore reserves of 1.291 and 3.074 billion tonnes respectively. Uralkali also holds the development licence for the Romanovsky Block of the Verkhnekamskoye deposit with the estimated reserves of 385 million tonnes of sylvinite ore.As of 20 December 2013, Uralkali's shareholder structure is as follows: 33.26% free float, 21.75% ONEXIM Group, 19.99% UralChem, 12.5% Chengdong Investment Corporation, 12.5% treasury shares. Wikipedia.

Li S.,Chinese Academy of Agricultural Sciences | Duan Y.,Inner Mongolia Academy of Agricultural and Animal Husbandry science | Guo T.,Gansu Academy of Agricultural science | Zhang P.,Gansu Academy of Agricultural science | And 3 more authors.
Field Crops Research | Year: 2015

Field trials were conducted to study response of potato (Solanum tuberosum L) yield and quality to potassium (K) application, soil indigenous K supply (IKS) and productivity (IKP), K use efficiency and critical level of soil test K to establish scientific methods for K management in potato production. Results indicated that K application increased tuber yield by a range of -2.8 to 7.2Mgha-1 with an average of 3.2Mgha-1, 90% positive responses. Potassium application produced an average of 4.9 percentage more commercial rate, 11.3g more mean tuber weight and 0.4 percentage more tuber starch content and 0.2 percentage less tuber sugar content than those of treatment without K application. The average agronomic efficiency of potassium (AEK) was 30.2kg tuber kg-1K2O, 56% observations was in 10-40kg tuber kg-1K2O. 79.2% of the observations showed negative K balance in potato fields with an average of 101.7kgKha-1 deficit. 87.5% of all the observations showed positive benefit from K application with an average return of US$715ha-1. The average IKS and IKP was 141.8kgKha-1 and 25.9Mgha-1 which can be explained 25% and 30% of variations, respectively, by soil exchangeable K. Significant negative quadratic relationship (R2=0.75, P<0.01) between yield response and relative yield, and significant linear relationship (R2=0.80, P<0.01) between yield response and AEK were obtained. There was a significant relationship (R2=0.74, P<0.01) between total uptake K by potato plant and total tuber yield. The critical level of soil exchangeable K at 90% relative yield was 105mgkg-1 which can be a reference for K recommendation. © 2015 Elsevier B.V. Source

Uralkali | Date: 2006-08-01

Granular potassium chloride used in industry, science, as well as in agriculture, horticulture and forestry.

Uralkali | Date: 2006-06-06

Muriate of potash used in industry, science, as well as in agriculture, horticulture and forestry.

News Article | March 17, 2015
Site: www.bloomberg.com

PAO Uralkali’s reported plan to skip a final dividend for 2014 is the latest signal that more Russian companies may cut payouts to conserve capital amid a funding drought, BCS Financial Group and UralSib Capital say. Potash producer Uralkali’s management will recommend not paying a dividend and boost investments instead, according to people familiar with the situation. Russian companies, squeezed by a shrinking economy and tougher access to overseas funds, may cut payouts by as much as 40 percent, Fitch Ratings said last month. While the government has said it would keep state-run entities’ dividend ratios at last year’s level, a sinking ruble lowers their dollar value, according to BCS. “Uralkali’s dividend story is a sign that Russian companies may reduce payments this year as they either generate less cash or need more money for their domestic needs,” Vladimir Tikhomirov, chief economist at BCS in Moscow, said by phone. “Even if dividend payments are unchanged in ruble terms, they are almost half of what they used to be in dollar terms after the currency’s devaluation. It’s only natural for some companies to cut dividends or avoid paying them altogether.” Global depositary receipts of Uralkali, the world’s largest potash producer, are down 10 percent this month in London, while the Bloomberg index of the most-traded Russian companies in the U.S. has slid 9.4 percent in New York. Oil, which along with natural gas accounts for about half of Russia’s budget revenue, has plummeted 13 percent in March. The Market Vectors Russia ETF, the biggest U.S. exchange-traded fund that tracks the nation’s stocks, plunged 8.8 percent. The Bloomberg Russia-US Equity Index gained 0.3 percent to 55.19 in New York yesterday, the first advance in three days. United Co. Rusal fell 0.2 percent to HK$4.95 at 11:13 a.m. in Hong Kong. OAO Sberbank, the nation’s biggest lender, said in November it will keep 2014 dividends “low” to preserve capital. In January, OAO Polyus Gold said it may stop using net income when calculating the figure and natural-gas producer OAO Gazprom said last month it plans to keep the payout ratio at 25 percent of profit under domestic accounting standards. OAO Rosneft, Russia’s largest oil producer, will reduce dividends by 36 percent this year, according to Bloomberg Dividend forecast. These projections contrast with the government’s past efforts to replenish budget revenue and attract foreign investors by boosting dividends at state-controlled companies. According to a plan announced in September 2013, the companies were due to pay at least 35 percent of profit under international accounting standards from 2016. With Russia facing its first economic contraction since 2009 amid sanctions linked to the conflict in Ukraine and oil prices at six-year lows, authorities have changed tack. In November, Economy Minister Alexei Ulyukayev suggested cutting state lenders’ dividends to zero in some cases to free up capital. Bank of Russia Governor Elvira Nabiullina said in an interview with Forbes Russia published last month that state banks should be allowed to reduce dividends payments. “There is no room for miracles,” Slava Smolyaninov, chief strategist at UralSib, said by phone from Moscow. “Russian companies’ profits are plunging and dividends will inevitably shrink, particularly in the banking industry.” The ruble lost 46 percent in 2014 and is the worst performer of the past six months among 24 emerging-market currencies tracked by Bloomberg. West Texas Intermediate crude has fallen almost 20 percent from this year’s peak, meeting a common definition of a bear market. Brent, the grade traders use to price Russia’s main export blend, is down 53 percent from a June high. It would be “reasonable” for investors to expect cuts of between 20 percent and 40 percent, Maxim Edelson, Fitch’s senior director for corporate ratings, who looks at dividends as part of his cash flow forecasts, said last month. Uralkali’s board will address management’s recommendation for no payment early next month, the people said, asking not to be identified before the official announcement. The board approved investment of $4.5 billion through 2020 to accelerate new developments following a production shutdown at the Solikamsk-2 mine after salty water began pouring in on Nov. 18. Uralkali’s press service declined to comment as did the press offices of the potash producer’s main owners, Dmitry Mazepin’s OAO Uralchem and billionaire Mikhail Prokhorov’s Onexim Group. “It’s so much easier for international investors to find predictable dividend plays elsewhere,” Ivan Manaenko, head of research at Veles Capital LLC in Moscow, said by phone. “There are currency risks when oil falls, there are geopolitical risks as it will take a long time to resolve the Ukraine crisis and sanctions are here to stay for now.”

News Article | March 17, 2015
Site: www.bloomberg.com

The inability of potash suppliers to secure a deal with China is spurring concern their No. 1 consumer will turn to the spot market for their product, driving down prices. Potash companies typically reach a deal with Chinese buyers in February, setting a benchmark price that guarantees stable profits for the nutrient used by farmers around the world to grow healthy crops. Now, with no pact in hand by mid-March, producers face the prospect of having to compete on pricing in an oversupplied market, said Daryna Kovalska, an analyst for Macquarie Group Ltd. in London. The Chinese benchmark price has underpinned the potash industry for more than a decade. This year, though, China went into the talks emboldened by higher inventories at home and falling prices on the spot market. The country wants to pay at or below the $305 a metric ton it paid last year, according to Macquarie, while producers want a 10 percent increase. Without an agreement, “there is a chance that the system will collapse,” Kovalska said in a telephone interview. In that case, the earnings certainty seen by producers in years past “will go out the window.” Potash is a form of potassium used as a fertilizer to strengthen plant roots and boost drought resistance. Unlike most other commodities, it’s dominated by producers that work to coordinate sales. The three biggest North American suppliers -- Mosaic Co. of the U.S. and Canada’s Potash Corp. of Saskatchewan and Agrium Inc. -- have a joint venture controlling their exports. The Russian producer PAO Uralkali, the world’s biggest supplier, had a similar export arrangement with its counterpart in Belarus until 2013. The Uralkali-Belarus joint venture once controlled 40 percent of potash exports. When Uralkali unexpectedly terminated the relationship in 2013, prices plunged. The China contract price has been unchanged at $305 a ton since January 2014. During the past year, the average U.S. retail potash price has risen 0.8 percent to $518.04, according to DTN, a commodity news service. Oleg Petrov, Uralkali’s head of sales, said the current talks have been held up because of large inventories of potash held by China. Stockpiles in the country were 4.5 million tons in December, 44 percent above the three-year average, Jason Miner and Marc Fields, analysts at Bloomberg Intelligence, said in a note Wednesday, citing the China National Chemical Information Center. Agrium and Mosaic spokesmen referred requests for comment on potash pricing to Canpotex Ltd., the export venture controlled by the big three North American producers. “Asian fertilizer markets have always been and will continue to be intensely competitive,” Canpotex Chief Executive Officer Steve Dechka said in an e-mailed statement. Officials from Uralkali and Potash Corp. declined to comment. No one at Sinofert Holdings Ltd., a Chinese company that represents the country in contract talks, could be reached for comment. Even if negotiations in China end up being successful this year, “we don’t see the suppliers achieving the price they are looking for,” Kovalska said, though there’s plenty of uncertainty. Credit Suisse Group AG said Tuesday that China will agree to a higher price. “Nobody really knows,” Spencer Churchill, a senior analyst at Paradigm Capital Inc. in Toronto said by phone. “The Russians are unpredictable, the Belarusians are unpredictable and so are the Chinese.” The delay is “one more step toward dissolving the traditional patterns” in the potash market, Miner said. Contract terms have grown shorter in recent years, and now it’s becoming harder to predict when deals will be signed, he said. India, another significant potash buyer, may sign a supply contract before China for the first time since 2008, according to Miner. The strong U.S. dollar, combined with government subsidies for fertilizer imports in India, could lead to a low contract price. India historically pays 5 percent to 6 percent more than China for potash, according to Bloomberg Intelligence. “The last time India came first, we faced seven quarters of falling volumes and then sharp price declines,” Miner said. The shifts in potash echo transitions seen in other commodity markets, notably iron ore, Kovalska and fellow Macquarie analyst Colin Hamilton said in a March 9 report. Like potash, iron ore was once dominated by a handful of producers and sold primarily through fixed-price contracts. Today, iron ore prices are tracked daily, and that information is typically used to negotiate long-term sales agreements. “The natural psychology is for pricing to move to a spot-linked index basis -– something we have seen in other bulk commodities,” the Macquarie analysts said in the report.

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