RU

INTEGRATED REPORT 2016

Business Model

Creating values

Capital

Financial Equities

  • Financial structure
  • Fund raising

Production capital

  • Mines
  • Potassium and carnallite production factories
  • Projects for the construction of new facilities
  • Mineral wagon fleet
  • Baltic Bulk Terminal
  • Trade representations

Intellectual capital

  • Corporate Governance System
  • Risk Management System
  • Internal control and monitoring systems

Human capital assets

  • Employees
  • Health and safety
  • Methods and Skills
  • Experience

Social capital

  • Working with stakeholders

Natural capital

  • Potash ore reserves
  • Carnallite ore reserves
  • Biodiversity and ecosystems
  • Water, air, soil

Process

Production

Uralkali’s production facilities include five mines, one carnallite plant and six potash plants that produce standard white and pink potassium chloride, as well as a premium product – granular potassium chloride. The company holds licenses for the development of three sections of the Verkhnekamskoye deposit, ensuring the implementation of Uralkali’s investment program. The Company’s advantage is one of the lowest production costs in the industry, which is an important factor in maintaining its industry leading position.

Our strengths:
  • Leadership in production cost
  • Significant resource base

Logistics

The distance of Uralkali products from plant to port is one of the shortest in the industry. The company uses its own fleet of mineral wagons (8000 units) and the Baltic Bulk Terminal. The developed logistics system allows us to maintain leading positions in the market, optimize warehouse capacities and regulate production if necessary.

Our strengths:
  • 7.4 million tonnes of transshipment capacity at the Baltic Bulk Terminal

Sales

Uralkali’s sales geography covers more than 60 countries. The Company’s strategy is aimed at maximizing revenues and maintaining the historic market share. The strategy allows the Company to effectively use such competitive advantages as its leading position in the industry in terms of production costs and production capacity.

Our strengths
  • Global scale of activities
  • 7 sales offices in key regions
  • Focus on expanding relations with international clients

Created Values

Buyers and partners

  • Quality product
  • Reliability of deliveries

Employees

  • Workplaces
  • Salary and social benefits
  • Training and career growth

Labor union

  • Employee Satisfaction
  • Compliance with occupational safety standards

Government and local authorities

  • Contribution to GDP
  • Tax revenues
  • Support for the economy of the region

Local communities

  • Contribution to education and health
  • Development and modernization of infrastructure
  • Improving quality of life
  • Charity, arrangement of sport and cultural events

Mass media

  • A clear understanding of Uralkali’s activities

STRATEGIC KPIs
SUSTAINABLE DEVELOPMENT
RISK MANAGEMENT SYSTEM
CORPORATE GOVERNANCE SYSTEM
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