PhosAgro Signs Supply Contract with Nagarjuna

12 Apr 2012 15:25

For Immediate Release 12 April 2012

PhosAgro Signs Supply Contract with Nagarjuna

Moscow - PhosAgro ("the Company"), a leading global vertically integrated phosphate-based fertilizer producer, announces that today that it has signed a contract with Nagarjuna, one of the leading manufacturers and suppliers of plant nutrients in India, to supply 600,000 tonnes of phosphate-based fertilizers through February 2013. The new contract includes an option to increase this tonnage by an additional 400,000 tonnes for delivery during that same period. Pricing is to be based on the benchmark Indian import price, CFR India. The parties agreed that the CFR India price for imported deliveries of DAP to India is the price agreed between Phoschem and major buyers in India, and for calculation of the NPK price, the price of MOP agreed between BPC and major buyers in India will be used.

PhosAgro CEO Maxim Volkov said: "We are happy to announce that we reached this agreement and are starting cooperation with one of the leading suppliers of fertilizers to Indian farmers. We found a suitable partner in Nagarjuna due to their consistency in supporting farmers through innovative and superior offerings. We look forward to continuing to supply the Indian market with our high-quality fertilizers to help Indian farmers to increase their yields and help the growing population of India meet their increasing demand for nutrition."

For further information please contact:

OJSC PhosAgro+7 495 231 2747Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press OfficerM:CommunicationsUKStuart Leasorleasor@mcomgroup.com+ 44 20 7920 2317RussiaSam VanDerlipvanderlip@mcomgroup.com+7 495 663 8005Notes to Editors

PhosAgro is a leading global vertically integrated phosphate-based fertiliser producer. The Group focuses on the production of phosphate-based fertilisers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 35.7 percent), as well as ammonia and nitrogen-based fertilisers. In 2010, the Group was the largest phosphate-based fertiliser producer in Europe, the largest producer of high-grade phosphate rock worldwide and the third largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also a leading producer of MCP feed phosphates in Europe, and the only producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high quality apatite-nepheline ore, representing over 75 years of production. The Group also controls substantial Al2O3 resources, and has 41% of Russia's rare earth oxides resources.

The Group's mines and phosphate rock production facilities are located in the mountainous areas of the Kola Peninsula in the Murmansk region of northwest Russia, whereas its fertiliser and feed phosphate production assets are located near the city of Cherepovets in the Vologda region and near the city of Balakovo in the Saratov region of southwest part of European Russia. The Group is the only global vertically integrated fertilizer producer that derives approximately 90% of its consolidated gross profit from the phosphates segment. PhosAgro's 1H 2011 IFRS revenue was $1.7 bln and EBITDA was $620 mln. The С ompany's net debt/EBITDA ratio was 0.6 at 30 June 2011.

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