Uralkali stock plummets on evacuation of potash mine
World’s largest potash supplier Uralkali (MCX:URKA)(LON:URALL) saw its stock sinking Tuesday to the lowest level since July last year as the company had to halt operations at one of its mines in Russia.
The company said in a statement an increase in brine inflow forced it to evacuate workers from its Solikamsk-2 mine in Russia’s Perm region, adding its four other mines continue to operate normally.
Shares in the firm fell almost 9.2% in Moscow, closing at 163 Russian Rubles.
Potash prices have gradually improved this year, yet they below July 2013 levels, right before the Russian producer announced a plan to break up a cartel-like marketing group and max out its production.
Uralkali later backed off those plans, but potash producers have struggled to push through higher prices. Some experts think that will continue because of low crop prices