Poland's Azoty to explore for chems feedstocks with copper miner KGHM

10 January 2014 18:02 Source:ICIS News

LONDON (ICIS)--Grupa Azoty has signed a memorandum of understanding to jointly explore for a range of chemical and fertilizer feedstocks with fellow Polish company and copper ore miner KGHM, Azoty said on Friday. 

Potential explorations for potash, phosphates, salt and non-ferrous materials were under consideration, Azoty, Poland's largest chemicals producer and Europe's second largest fertilizer maker, added.

Some exploration activity could be conducted outside Poland, Azoty said.

Grupa Azoty and KGHM would set up a special purpose vehicle, in which they would both retain a 50% stake, to realise their cooperation, it added.

The announcement of the cooperation follows last year's declaration from Grupa Azoty mineral fertilizer unit Fosfory Gdansk that it would link up with KGHM to explore for hundreds of millions of tonnes of polyhalite in the Gulf of Gdansk.

Grupa Azoty has said that its range of specialty fertilizers could be transformed if deposits of the mineral polyhalite – a hydrated sulphate of potassium, calcium and magnesium that is used in fertilizer compounds – could be successfully exploited.

Under its commitment to vertically integrate and diversify feedstocks, Grupa Azoty last September went ahead and acquired the Polish treasury ministry’s 85% stake in Zaklady Chemiczne Siarkopol, Poland's only sulphur mining company.

Then in October, Grupa Azoty multi-component fertilizer producer Zaklady Chemiczne Police (ZChP) received its first two shipments of phosphorites from Senegal's African Investment Group, a mining company it acquired control of two months previously.

By Will Conroy