MOSCOW Oct 13 Russian miner Uralkali (URKA.MM)
may be able to use more than half of the potash reserves that
were thought to be lost in a flood at one of its mines in 2006,
Kommersant business daily reported on Tuesday.
The lost reserves had been valued at 84.6 billion roubles
($2.86 billion) by Russian subsoil agency Rosnedra.
Around 50 to 60 percent of the previously "lost" reserves
can be used, Kommersant quoted Denis Khramov, head of the
Natural Resources Ministry's state policy department, as telling
a parliamentary committee.
The reserves can be accessed through some of the functioning
mining tunnels, the newspaper said.
Uralkali was not immediately available for comment.
"While these reserves can potentially increase Uralkali's
resource base, we do not expect the company to start developing
them from the neighbouring mines any time soon," analysts at VTB
Capital said in a research note.
"Such extraction would significantly increase technological
risks for Mines 2 and 4, while Uralkali currently has other
sufficient reserves to produce the necessary volumes," VTB
(Writing by Toni Vorobyova; Editing by Hans Peters)