OREANDA-NEWS. August 3, 2012. Uralkali (LSE: URKA) has started works to repair the soil subsidence area near the Berezniki Mining Construction Office.

As of 1 August 2012 the soil subsidence area is 101 by 97 metres wide. According to the repair project, c. 400,000 tonnes of sand and gravel mix will be filled in the sinkhole. The Company expects to complete the repair works in September 2012.

On 5 April 2011, the Company informed about a sinkhole 15 by 22 metres wide that had appeared near one of the non-operational buildings of the Berezniki Mining Construction Office. The possibility of surface subsidence in this area had been forecasted by the “Galurgia” Institute and the Mining Institute of the Urals Affiliate of the Russian Academy of Science which following the complex system of visual surveillance, seismic, gas and chemical and satellite monitoring detected in spring 2011 a hazardous zone characterised by high speed of soil subsidence. Since spring 2011 the hazardous area has been contained and safety and security personnel have been stationed.