Yara’s ongoing transformation has a strategic focus on food solutions, premium products and enabling the hydrogen economy. Salitre remains an attractive project, but as previously communicated the project progress has been impacted by Covid 19, and significant construction time and capital expenditure remains to reach completion. The Salitre divestment therefore supports Yara’s transformation by reallocating capital and risk appetite in the coming years towards Yara’s strategic focus areas.
“This transaction allows us to further sharpen our strategic focus, based on our strong competitive edges.
Yara entered into the Salitre project in 2014, and its assets comprise phosphate mining operations, including tailing dam, with an annual production capacity of approximately 1,200 kt of phosphate rock and an on-going project to construct phosphate processing operations with a projected production capacity of approximately 1,000 kt per annum at completion. The estimated capital expenditure required to reach completion is of a similar magnitude to the divestment value.
Following the decision to divest, it is expected that the impacted assets will be classified as a held-for-sale disposal group in the third quarter 2021 and that an impairment charge of approximately
The transaction is expected to be completed in approximately six months, and is conditional on obtaining necessary local regulatory approvals and customary closing conditions.
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Thor Giæver, CFO
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Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a climate positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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