Silvinit bypass railroad construction accelerated

06 November 2007 16:31  [Source: ICIS news]

LONDON (ICIS news)--The construction of a 1.8 km section of a new 6 km rail line to bypass the area affected by the potash mine collapse has been accelerated and is due to be completed by 1 January 2008, a source at International Potash Company (IPC), the marketer of Silvinit potash, said on Tuesday.


This 1.8 km section is the most important of the new rail link as it the closest section to the sinkhole.


The remainder of the rail line is still scheduled to be completed by February 2008.


Potash shipments from Russia’s Silvinit have been threatened due to a sinkhole caused by mine flooding.


On 24 October, the sinkhole caused by flooding at Uralkali’s Berezniki 1 mine grew by 30 metres towards the rail line used for potash shipments by Silvinit and was only about 100 metres from a 800 metre bypass railroad line.


IPC continued to monitor the situation closely, the source said, adding that there had been no new major developments in the status of the sinkhole and that shipments continued to be shipped using the existing railroad.


IPC has suspended all new potash sales at present, but contract commitments continue to run.


Silvinit, based in Solikamsk in the Perm region of the Urals, controls 40% of the Russian potash market and exports roughly 80% of its output.

By: Rebecca Clarke
+44 20 8652 3214

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