(Alliance News) - Kropz PLC said Friday it has signed a memorandum of understanding with Russia's PhosAgro Group to increase the capacity of its Elandsfontein phosphate mine in South Africa and promote green fertilizers.
African phosphate producer said the two companies have agreed to evaluate opportunities to exchange information and technical expertise. The company also added the agreement will increase the capacity of Kropz's Elandsfontein asset in South Africa, the country's second largest phosphate deposit, and in the Republic of the Congo and Ghana.
Kropz said the two companies also plan to explore the "potential for cooperation aimed at promoting green fertilizers in world markets and teaching farmers about the benefits of using them."
Ian Harebottle, chief executive officer of Kropz said: "The synergies with PhosAgro will provide Kropz with access to expert knowledge at all stages of the supply chain: from exploration works and feasibility studies to the construction of mines, as well as directly in the sales market, where PhosAgro has a strong position and an ever-growing customer base."
"Phosphate-based fertilizers play a key role in increasing crop yields and maintaining food security, especially in the countries of sub-Saharan Africa," Harebottle said.
Kropz shares were 11% down in London at 8.00 pence each on Friday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Kropz Plc (KRPZ)