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Publish Date : 25-May-2013

Apatit, a subsidiary of one of world's leading fertilizer companies, PhosAgro and Orica have signed a landmark, 10-year contract to supply explosives and blasting services to Apatit's mining facilities at Kirovsk situated in the Murmansk Province in north west Russia.

The large Australian mining services supply contract for the expanding Commonwealth of Independent States (CIS) market, will see Orica supply up to 700,000 tonnes of bulk explosives over ten years to Apatit servicing both open cut and underground mining facilities.

Orica will work with Apatit in the construction of an ammonium nitrate emulsion plant Apatit's mine site at Kirovsk. The contract will involve the supply of up to 70,000 tonnes of explosives per annum for ten years, as well as logistics and 'down the hole' services.

Orica Executive Global Head Mining Services Craig Elkington said: "Orica is delighted to have signed this landmark contract with one of the world's leading phosphate producers. This significant contract with a valued customer aligns well to Orica's strategy of offering differentiated products and services through reliable and secure supply points for an international customer base."

"Through this agreement Orica has been able to deploy its skills, technology and know-how to forge a strong commercial long-term relationship with a global leader in the fast developing CIS region," Mr Elkington said.

Apatit Techenicacal (Technical) Director Zvonar Andrey Yurievich said: "The main priorities in production policy of Apatit OJSC are ensuring stable production of apatite ore, optimised production costs and guaranteed security, especially in blasting works. We firmly believe that cooperation with Orica, a world leader in production and application of emulsion explosives, will enable us to achieve all of the above aims on the highest level."

"The established cooperation with Orica and the explosives loading and blasting works which have begun in its framework in underground conditions, Orica's professionalism and the impressive standard and level of technologies which the company showed in this have lead to the final decision of Apatit to dedicate itself to full and comprehensive cooperation in production and application of emulsion explosives. The ultimate goal of this, as we see it, is maximum transfer of the full cycle of blasting both in open-cut and underground conditions of Apatit to Orica's specialists. The steps which we have made together up till now make us confident that our joint work will be successful and fruitful," Mr Yurievich said.

The Apatit contract will increase the number of manufacturing facilities Orica operates in Russia to seven where Orica is experiencing growth in the emerging CIS market.

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