Run, Yara, Run

The plane has become a game-changer for you too.

There is a new fatal accident at Belaruskali. Recently, accidents are one after another. The previous death was in the fall of 2020.

The reasons for the increased injury rate lie in the attitude of the management of the enterprise. For a long time, production safety has moved to the background or even the third plan. The main thing is production and volumes. At the same time, the equipment was not upgraded for a very long time, and the miners often carry out repairs at their own expense, so as not to lose their premiums for the volume.

Belaruskali has the lowest cost of fertilizer production in the world. This is due not only to low salaries but also to the fact that the company has not purchased new expensive equipment for a very, very long time. There was still more or less large-scale modernization of production under the director Kiriyenko, who was fired in 2014 and instead of him the godfather of Viktor Lukashenko, Golovaty, took over. The dismissal was scandalous. Lukashenka was informed that the company of the director's son, Kiryenka, was supplying equipment to Belkali. The order was strict: "Cut it with one blow."

As a result, the wood chips were scattered in different directions, and, since then, there has been practically no renovation of the enterprise. The money went into the pockets of the terrorist and his junta. That is why Belkali and BPC are constantly dumping, which causes dissatisfaction with the rest of the market players. But for the junta, the strategy is simple - to stand for a day and hold out for a night. In such conditions, no one thinks for 2-3 years ahead. And even more so about the safety of workers. And, even in such conditions, the net profit of Belaruskali in 2020 fell 41 times.

When the world price falls, the same Canadians stop mines since there is no point in working at a loss. However, at this time, Belarus is trying to bite off the market share and drive the maximum volumes. According to Nick's sources, the cost of one ton of potash is about $ 80 per ton, which is significantly lower than that of competitors.

This year we managed to slightly increase the cost - up to $ 247 per ton. However, do not forget that this is the price of CFR or CIF ports of unloading (therefore, by the way, the reorientation from Klaipeda to Russian ports will be at the expense of Belkali). That is, if you discard the freight, then nothing is left. Freight has risen significantly today. If earlier it was possible to send potash to China for $ 50-60 per ton, now the figures reach $ 100. To these costs, you need to add $ 20-25 for cargo clearance at the port, as well as delivery to Klaipeda and transshipment (this is another $ 20-25).

So it turns out that from $ 247, at best, you need to subtract $ 90-100, and, at current freight prices, the whole $ 150. And then the price received by the plant (FCA) is no longer as sweet as reported in high offices and hovers around $ 100. As we have already said, the cost of producing a ton of fertilizers is $ 80. Thus, earnings per ton are about $ 20. For example, in 2020, 2.65 million tons were supplied to India and China. That is, the net earnings here are $ 53 million. It is nothing for the giant. Of course, with such earnings, there is no chance for modernization. It's enough for a couple of bonuses to pay to employees (in May, they again paid a bonus of 100 percent).

It is easier to completely sabotage the investigation of the tragedy and pay for the burial to one specific family. The money for the burial is usually about 30 average monthly salaries. They are usually enough to keep relatives from making a fuss, and Belkali continued to send its miners to certain death (and the Yara leadership, who wrote a whole Talmud of comments on labor protection, doesn't give a damn. A new collective agreement, by the way, was signed as early as ever - on 30 April. According to it, in agreement with the trade union, you can dismiss workers who have appeared in the protests). Along the way, paying dividends and continuing to plunder the main enterprise of the country. It is necessary to do it before the introduction of sanctions, because, then, God knows how it will be.

Run, Yara, run. The plane has become a game-changer for you too. Now you're helping more than just a ghoul. Now you are one step away from being recognized as a terrorist sponsor.

The Nick and Mike telegram channel