PhosAgro Increases Stake in Metachem

OJSC PHOSAGRO - PhosAgro Increases Stake in Metachem

PR Newswire

London, December 26

PhosAgro Increases Stake in Metachem

Moscow - PhosAgro (or "the Company") (Moscow Exchange, LSE: PHOR), a leadingglobal vertically integrated phosphate-based fertilizer producer, announces theofficial state registration of an increase to Metachem's authorised capital byway of a new contribution from PhosAgro.

As a result of the authorised capital increase, OJSC PhosAgro's directownership in MetaChem increased to 66.79%, while PhosAgro Group's totalownership increased to 74.76%.

PhosAgro's potassium sulphate capacity is now increased by 80 thousand tonnesp.a. and tripolyphosphate capacity by 130 thousand tonnes p.a. In addition,PhosAgro's sulphuric and phosphoric acid production capacities have increasedby 4.5% (215 thousand tonnes p.a.) and 4.1% (80 thousand tonnes of P2O5 p.a.),respectively.

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OJSC PhosAgro

PhosAgro is a leading global vertically integrated phosphate-based fertiliserproducer. The Group focuses on the production of phosphate-based fertilisers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilisers.

The Group is the largest phosphate-based fertiliser producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also a leading producer of MCP feed phosphates in Europe, and theonly producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore, representing over 75 years of production. TheGroup also controls substantial Al2O3 resources and has 41% of Russia's rareearth oxides resources according to the G.P. Luzin Institute of EconomicProblems of the Kolskiy Scientific Centre of the Russian Academy of Sciences,2010).

The Group's mines and phosphate rock production facilities are located in themountainous areas of the Kola Peninsula in the Murmansk region of northwestRussia, whereas its fertiliser and feed phosphate production assets are locatednear the city of Cherepovets in the Vologda region and near the city ofBalakovo in the Saratov region of southwest part of European Russia. PhosAgro's2011 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.2 bln. The Сompany'snet debt/EBITDA ratio was 0.43 at 31 December 2011.

For further information on PhosAgro please visit: www.PhosAgro.com