PhosAgro Signs Contract for New Ammonia Plant

For Immediate Release 21 June 2013 PhosAgro Signs Contract with Mitsubishi Heavy Industries-LedInternationalConsortium for Construction of New Energy Efficient Ammonia Production Facilityin Vologda Region St. Petersburg - PhosAgro (Moscow Exchange, LSE: PHOR), a leading globalvertically integrated phosphate-based fertilizer producer, announces that ithas signed a contract with an international consortium led by Mitsubishi HeavyIndustries Ltd for construction of a new, energy efficient ammonia productionplant at PhosAgro-Cherepovets in the Vologda region. The new line is expectedto have an ammonia production capacity of 2,200 tonnes/day (760 ths tonnes/year). The document was signed during the St. Petersburg International Economic Forum,with the Russian Federation Minister for Industry and Trade Denis Manturov, theGovernor of the Vologda region Oleg Kuvshinnikov, and PhosAgro Deputy Chairmanof the Board and Vice President of the Russian Union of Chemists Andrey Guryevin attendance. The consortium will also include the Japanese company Sojitz and theRussian-registered company Renaissance Heavy Industries, which will beresponsible for construction work. The licensor of the ammonia productiontechnology is Haldor Topsoe (Denmark), a leading global engineering company inthis sector. Construction of the third ammonia production line at PhosAgro-Cherepovets is akey part of PhosAgro's long-term modernisation and growth strategy. Projectdevelopment was led by the National Mineral Resources University (St.Petersburg) and is aimed at a ground-up modernisation of the Company'sproduction technologies using the best available technologies. The commissioning of the new ammonia plant at PhosAgro-Cherepovets is plannedfor the first half of 2017. The new facility will be the highest-capacity ofany ammonia lines currently functioning or under construction in Russia. Withthe launch of the new ammonia plant, PhosAgro's total ammonia productioncapacity will increase by nearly 70%. Total investments in the new ammonia facility and related infrastructure, whichPhosAgro plans to finance from its own cash flows and with third-party funding,are expected to be USD 785 million. The new ammonia production facility will rank among the best in the world interms of characteristics like raw materials and energy consumption, labourproductivity, up-time between repairs, as well as environmental impact. Naturalgas consumption per unit if production is expected to be 20% lower than thecurrent average for ammonia production facilities in Russia. In order to supply the new ammonia line with hydrocarbon raw materials, Gazpromhas agreed to supply an additional 800 million cubic metres of gas per year toPhosAgro following the launch of the new facility. The Russian Ministry ofEconomic Development has also confirmed the use of natural gas in the newammonia production line. PhosAgro CEO Maxim Volkov said: "The construction and commissioning of the newammonia plant at our PhosAgro-Cherepovets site will mark a new phase inPhosAgro's development, strengthen its market-leading position, create new jobsand improve production efficiency. The project is designed to achieve one ofPhosAgro's key strategic goals of increasing internal processing of its ownphosphate rock to produce higher volumes of phosphate-based fertilizers." For further information please contact: OJSC PhosAgro+7 495 232-96-89Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press Officer M:CommunicationsSam [email protected]+44 (0) 20 7920 2356 Notes to Editors 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's2012 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.1 bln. The Сompany'snet debt/EBITDA ratio was 0.77 at 31 December 2012.

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