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Belaruskali acquires right to develop potash deposit in Homyel region

Alyaksandr Lukashenka on January 17 signed an edict awarding the right to mine and process potash at a deposit in the Petrykaw district, Homyel region, to Belarus’ potash company Belaruskali, reported the presidential press office.

Under the “investment agreement,” a mining and processing complex with an annual output capacity of 1.5 million tons of potassium chloride will be built at the deposit before January 1, 2022.

The right to carry out the project was granted to Belaruskali as a result of a bidding contest, said the press office.

After signing the investment agreement with the government, Belaruskali will have 12 months to pay it a one-time fee totaling $146.5 million for the 50-year right to develop the deposit and $20.7 million by way of compensation for exploration work.

A joint company will be established to carry out the project. The government will own 50 percent in it, while Belaruskali will be allowed to use foreign investment against the remaining 50 percent.

Detailed exploration work at the Petrykaw deposit has revealed 1,064 million tons of raw potassium salts, or 236 million tons in the K2O equivalent, Alena Penyaz, spokeswoman for the Ministry of Natural Resources and Environmental Protection, told BelaPAN in October 2011. The winner of the bidding contest will be required to export potash exclusively through Belarusian Potash Company or some other authorized company on equal terms with other potash producers, Ms. Penyaz said.