Environmental Protection

07

Due to the nature of its business, some of PhosAgro’s activities may have an adverse impact on the environment. 

This may include the discharge of pollutants into the atmosphere, the accumulation of waste water and the production of various types of solid waste, which need to be disposed of or re-cycled. For this reason, one of PhosAgro’s main priorities is to minimise the environmental impact of its operations. We ensure that our environmental management systems comply with the relevant legislation and ISO 14001:2004 environmental standards and ourdownstream enterprises have been certified compliant with these standards.This is confirmed annually in line with established procedures.We also expect to obtain ISO 14001:2004 certificate for Apatit in 2013.

Our environmental protection strategy and policy are determined by the Environmental Doctrine of the Russian Federation, Russian environmental legislation, Government regulations and by the Company’s ecological strategy. Strategies and policies developed by and introduced at each of our subsidiaries go to make up PhosAgro’s unified environmental protection strategy and policy. Our key activities in this area include:

  • Efficient use of raw materials and energy resources;
  • Construction of new production facilities, and modernisation and technical re-equipping of existing facilities, using the best available technology and technical solutions;
  • Introduction of automated control systems for production processes, including control over the discharge of pollutants;
  • Reduction of the discharge of pollutants by the Company’s enterprises into the atmosphere and into rivers, lakes, etc. by improving air and water treatment systems;
  • Reduction in the production of by-products that require long-term storage and increasing the amount of re-processing of secondary raw materials;
  • Measures to reduce the environmental impact of waste storage by improving the design and reliability of storage systems;
  • Continuous improvement of the Company’s environmental management system (EMS), which is based on ISO 14001:2004 environmental standards, EU environmental protection directives and international agreements, including the Basel Convention and the Kyoto Protocol.

In 2011, the international consulting firm AMEC conducted an independent environmental and key occupational health and safety assessment of the Company’s operations at Ammophos, BMF, Cherepovetsky Azot and Agro-Cherepovets. Based on its assessment, AMEC has concluded that (i) each enterprise possesses all the legally required licences and authorisations, including those relating to norms/limits on air emissions, wastewater discharge and solid waste disposal; and (ii) the enterprises’ operations are generally compliant with the conditions set out in the relevant permits and the applicable Russian legislation. AMEC also praised the strict control exercised by PhosAgro’s management over its enterprises with regards to compliance with all requirements and regulations, as well as management’s significant efforts to increase energy efficiency.

Environmental Initiatives

Air Quality Water Treatment Energy efficiency
All PhosAgro’s enterprises are equipped with modern gas purification systems. Each enterprise has set up its own environmental protection department, which monitors atmospheric emissions and air quality.

The ore crushing facilities at Apatit are equipped with gas handling and dust capture systems. The amount of dust being blown around from the tailing dumps is minimised by using chemical compounds to form a crust on the dust-generating surfaces and by replanting and biologically restoring the dumps.

Cherepovetsky Azot is currently implementing a project aimed at reducing the emission of greenhouse gas (GHG, or nitrous oxide), using the selective catalytic decomposition method. This is widely used by leading foreign companies. According to the project documentation, this project will enable Cherepovetsky Azot to reduce GHG emissions up to 2.7 million tonnes of CO₂e in the period 2008-2012. Therefore, in 2011, Cherepovetsky Azot continuedworking towards receiving all necessary approvals from the Russian authoritiesfor this projectwithinthe framework of the Kyoto Protocol.
BMF is currently the only enterprise in the Russian fertiliser market to use a closed-cycle water supply, which avoids any contamination of regional water resources by polluted waste water. The introduction of this technology is especially important for BMF as it is located in the Saratov region, close to the Volga River.

Ammophos regularly monitors the condition of its water-based system for removing phosphogypsum and its sludge storage facilities, and carries out geomonitoring of local groundwater pits. The main objective of the monitoring is to prevent situations that may lead to groundwater contamination. In 2011, Ammophos put into operation the first phase of a combined sludge reservoir with a total storage capacity of 100 million cubic metres of phosphogypsum. The first phase includes a bund wall and ditch drains, water discharge structures, a clarified wastewater pump station, buffer pool and other structures. In addition, Ammophos commissioned a new microbiological laboratory as part of its water treatment reconstruction programme. This laboratory uses the latest technologies to ensure the highest standards of quality control for the drinking water consumed by Ammophos employees.
All PhosAgro’s enterprises have developed and introduced energy saving and energy efficiency programmes in order to meet the requirements of the Federal Law of the Russian Federation “On Saving Energy and Increasing Energy Efficiency, and on Amendments to Certain Legislative Acts of the Russian Federation”. In addition, programmes for the replacing / refurbishing of equipment were developed and implemented, which will reduce energy usage.

Cherepovetsky Azot is currently building a modern urea production plant with an annual production capacity of 500,000 tonnes and a new gas turbine power plant with a power generation capacity of 32 MW. By producing urea, Cherepovetsky Azot will resolve the issue of processing ammonia and CO₂ into value-added fertilisers. The new gas turbine unit will supply nearly all the enterprise’s electricity requirements, and will significantly improve the enterprise’s energy efficiency indicators.

Between 2003 and 2009, four new sulphuric acid units with a total production capacity of 2.7 million tonnes of sulphuric acid per year were installed at Ammophos. As a result, the total generating capacity of the turbine generators, which are driven by the exhaust steam coming from the new sulphuric acid units, increased to 102 MW. The enterprise is now fully self-sufficient in power generation, and also contributes to the energy resources of the Volga region. In November 2011, the new sulphuric acid unit was installed at BMF and, as a result, the enterprise’s total production capacity was increased by 50% to 1.9 million tonnes of sulphuric acid per year. In addition to the new sulphuric acid unit, a 25MW turbine generator was installed at BMF, which enabled BMF to attain more than 70% self-sufficiency in relation to its power supply.

Cases

In 2011, Apatit was awarded the “European Quality” gold medal, and was included in the top 100 best enterprises in Russia in the field of ecology and environmental management. This gold medal is in recognition of PhosAgro’s achievements in the area of ​​environmental protection, as well as its ongoing work towards creating safe working conditions and better environmental management. Konstantin Nikitin, General Director of Apatit, received the “Environmentalist of the Year” award, and Fedor Nachevkin, Head of Environmental Protection at Apatit, received the “Best Manager of Environmental Services” award.

In May 2011, PhosAgro sponsored and participated in the 4th Nevsky International Ecological Congress. The main objective of the Congress was to join forces and share initiatives and the experience of government, business, science, social and environmental organisations in the fields of environmental protection and ecological safety.