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Acron and Dorogobuzh Contract with Apatit for 2010-2011 Apatite Concentrate Supplies

Acron and Dorogobuzh have signed additional agreements with Apatit for apatite concentrate supplies in 2010 and 2011. In 2010, the companies will pay RUB 3,050 per tonne, the price was recommended by Russian FAS for 2009. In 2011, the price will go up 7.5% to RUB 3,278 per tonne. The agreements also provide for fixed supplies to completely cover the companies’ needs: 230,000 tonnes for Dorogobuzh in 2010 and 250,000 tonnes in 2011, 470,000 tonnes for Acron in 2010. Acron will determine the supply needed for 2011 at a later date under its annual request.

Commenting on the agreements, Chairman of the Board of Directors Alexander Popov said, “Through negotiations we reached an agreement and determined the details for our mid-term cooperation. Over the next two years these agreements will ensure that Acron and Dorogobuzh have the phosphates necessary for sustainable operations. Moreover, with transparent raw materials pricing our companies shall be able to optimize inflation risks.”