OREANDA-NEWS. October 17, 2011. Belarus and GMC Global Energy plc (a subsidiary of an international holding company owned by Russian tycoon Mikhail Gutseriyev) signed an investment agreement Wednesday to build an ore mining, dressing and processing plant with an estimated capacity of 1.1 million tonnes of potassium chloride worth U.S. USD 1.5 billion.

On behalf of Belarus the document was signed by Economy Minister Nikolai Snopkov, while the investor was represented by Anton Zhuchenko, CEO of GMC Global Energy Plc.

They plan to implement the project in 2012-2020. The newly-established mining company is expected to reach its estimated capacity in 2021.

For the new production of potash fertilizer, the investment project targets raw materials bases in Nezhinsky (eastern part), Smolovsky, and Lyubansky sections of Starobinskoye potash salts deposits.

Prior to signing the investment deal, Gutseriyev met with Belarus’ premier Mikhail Myasnikovich and assured the Belarusian partner that as much as USD 1.75 billion would be invested in Belarus’ economy within the framework of the potash mining project. The first installments will start coming in four weeks after the deal was signed, Gutseriyev said. “The first installment is USD 32 million and another USD 50 million will be handed down for project documentation,” the Russian businessman said.

The new potash mining company will go by the name of “Slavkali”, Gutseriyev said.

The tycoon explained, the fertilizer produced by the new company will be distributed exclusively by the Belarusian Potash Company (BPC). Should the BPC gives the business offer a miss, the sales will be handed over to any other trader authorized by Belarus’ government, Gutseriyev said. “And if the authorized trader says no, we will be selling it ourselves”, the Russian businessman said.

Should there be necessary to sell a stake in Slavkali, or part of its property, “we must first make an offer to the Belarusian government”, Gutseriyev said. “By this token, Belarus’ mineral resources are under effective protection”, the tycoon said.