Acron buys 30% stake in Talitsky potash project from banks

MOSCOW. March 29 (Interfax) - Acron bought a 30% stake in Verkhnekamsk Potash Company, operator of the Talitsky Mining and Processing Plant project in the Perm Territory, from partner banks in the first quarter of 2024, the company said in a financial statement.

Acron's share in the project has increased to 80% upon the purchase.

Prior to the deal, Acron owned 50% plus one share in Verkhnekamsk Potash Company, Sberbank had a 29.9% stake, Otkritie Bank 10.1% and VTB 10%.

Acron had a call option to buy 19.9% of Verkhnekamsk Potash Company from banks until December 2023 and 10% until February 2024, inclusive. Acron also has an option to buy a 9.99% stake in the project until September 2025. The banks have out options allowing them to sell stakes in the project until September 2025.

Acron did not say how much the deal cost. It bought 10% of the project from Sberbank in 2020.

Acron said in September that it planned to begin production of potassium chloride at the Talitsky Mining and Processing Plant in 2026. The project has been rescheduled several times due to worsening potassium chloride market conditions and difficulties in attracting financing.

Project cost have risen to $2.7 billion. Total capex of the Talitsky project with capacity of 2 million tonnes of potassium chloride per year was previously estimated at $1.5 billion, while another $300 million would be allocated to boost capacity to 2.6 million tonnes.