Velta Group of companies with titanium ore mining assets in Novomyrhorod (Kirovograd region) produced 71 thousand tons of ilmenite in January-September 2024, while 104 thousand tons of this product were produced in the same period last year (down 31.7%).
“The reasons for the decline are obvious. The first one I would mention is the electricity supply, namely the price increase. Previously, electricity was in third place in the cost of production, but now it has confidently moved to the first position. If we talk about the period of 9 months of last year and this year, the growth was 35% and even more, since the price fluctuates from month to month, the maximum difference is 93%! Of course, this is compounded by limited supplies,” explained Andriy Brodsky, CEO and co-owner of the company, in response to an inquiry from Interfax-Ukraine.
According to him, logistics also continues to be a challenge, affecting production costs and hindering development. In addition, there is a critical situation with personnel: despite the fact that our titanium complex is recognized as critical, 15% of the staff serve in the Armed Forces.
“And if these problems have conditionally arisen since the beginning of the war, the government is adding new ones – increasing taxes. So far, I have heard from business colleagues that there is a strict link between tax payments and the status of a critical enterprise. If you don’t pay the increased taxes on time, your company immediately loses its status, and your employees lose their reservations and quickly receive summonses. I would say that now is the time for Ukrainian businessmen to make a choice without a choice,” the CEO believes.
As reported, Velta produced 25.409 thousand tons of ilmenite in 1Q2024.
Velta was registered in April 2000. The main activity is the extraction and production of ilmenite concentrate.
Velta Holding LLC owns 100% of Velta PCF LLC. The ultimate beneficiaries are three individuals: Andrii Brodskyi (60%), Vadym Moskalenko (20%) and Vitalii Malakhov (20%).
