Solikamsk-2 accident first implications: situation could worsen
After a statement made by one of the world’s largest potash producers and exporters Uralkali (MCX:URKA)(LON:URALL), first visual implications of Solikamsk-2 potash mine accident have been revealed.
A sinkhole with a diameter of 30-40 meters has been detected to the east of the Solikamsk-2 production site, at the area packed with summer cottages. There were no casualties reported so far.
30-40 meters diameter sinkhole near the Solikamsk-2 potash mine (source: V-kurse.ru).
30-40 meters diameter sinkhole near the Solikamsk-2 potash mine (source: V-kurse.ru).
Some experts do believe that producing Solikamsk-1 mine adjacent to flooded Solikamsk-2 mine, likely to be flooded also, but it will not happen soon since there are two safety barriers installed between mines, – a 20 meters concrete wall and a 200 meters pillar, which entirely consists of potassium salt (see picture below).
Cross-section of Solikamsk 1 and 2 mines. Source: V-kurse.ru
Potentially, fresh water could mix with the brine in a flooded mine, which in turn may create microfractures in a concrete wall by that time.
Tectonic fractures are other possible way water/brine mix may penetrate and dissolve protective pillar.
Theoretically, this process may take years, if it really happens.
We will continue to monitor Uralkali’s official statements in this regard.
Gratefully no one has been hurt.
Some amazing photos and could have a significant effect on Potash prices as the flooded mine (Solikamsk-2) provides 3.5% of global capacity on it's own. There are also concerns now that Solikamsk-1 (connected to Solikamsk-2) could be at risk.
KPC Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
