Business news from Ukraine

Business news from Ukraine

Mezhyrychinsky GOK launches enrichment plant to produce ilmenite concentrate

1 February , 2025  

Mezhyrychinsky GOK LLC (Irshansk, Zhytomyr region), a mining company and part of Group DF’s titanium business, has launched an enrichment plant to produce ilmenite concentrate (TiO2).

According to the company, the plant has reached its design capacity of 20-25 tons of ilmenite concentrate per hour, or 12-15 thousand tons per month.

“The team has managed to restore the enterprise’s performance, and the concentrator has been restarted after a downtime. We have restored the lost sales markets and business ties with partners: we have already signed good contracts with European partners and are working on their fulfillment. In addition, we are rebuilding our team,” said Dmitry Golik, director of Mezhirichny GOK.

According to him, the company’s launch was delayed, among other things, due to staffing problems caused by the mobilization of employees – today every eighth employee of Mezhirichny GOK serves in the Armed Forces of Ukraine. Thanks to the efforts of its specialists, the company is once again becoming an international player, has restored all the broken logistics links and is operating efficiently, gradually increasing production volumes. This will benefit not only partners and businesses, but also local communities and the national budget. In addition, this is an important step towards increasing the country’s exports and strengthening the entire industry,” Golik emphasized.

The press release explains that the reopening of the concentrator was made possible thanks to the significant support of local government and local authorities. The launch made it possible to employ 100% of the staff and restore the previous level of salaries.

The GOK employs about 400 people, including 50 who serve in the Ukrainian Armed Forces. Mezhyrichensky GOK remains the mainstay of two towns in Zhytomyr region – Irshansk and Nova Borova and the united territorial communities of the same name.

In 2023, Mezhyrichny GOK mined only 500 thousand tons of ilmenite ore and produced 22.1 thousand tons of ilmenite concentrate. In 2024 (January-February), the company produced 520 thousand tons of ilmenite ore. The GOK’s production capacity is capable of mining 4 million tons of ilmenite ore per year and producing 180 thousand tons of ilmenite concentrate per year.

Mezhyrichensky GOK consists of two complexes: an ilmenite ore mining/blister concentrate production facility and an enrichment plant that produces ilmenite concentrate. The company’s main product is titanium dioxide (sulfate ilmenite concentrate) and operates exclusively in the chemical titanium segment, which cannot be used in the military and industrial industry due to its chemical properties. It is a raw material for the production of pigments used in the paint and varnish industry, paper, plastics and construction materials.

“Our strategic plan is to reach pre-war production capacity, but everything will depend on the global price environment. The European economy is recovering, so we expect an increase in consumption of ilmenite concentrate. Positive signals are now emerging for global players. After the war, the global market will recover from the recession even faster in 2025-2026 and grow faster. This will definitely have a positive impact on our business,” the CEO emphasized.

Earlier, Group DF’s press service reported that the forced shutdown and almost a year of downtime at the plant in 2023-2024 were due to the illegal decision of the State Service of Geology and Subsoil of Ukraine (Derzhgeonadr) No. 178 of March 27, 2023. At that time, the State Service of Geology and Subsoil issued an order to suspend the special permit, citing the new law on subsoil use. Subsequently, Group DF’s lawyers managed to appeal this decision and prove its illegality.

On November 16, 2023, pursuant to the decision of the Zhytomyr District Administrative Court of July 27, 2023 and the decision of the Seventh Administrative Court of Appeal of November 7, 2023, the State Service of Geology and Mineral Resources renewed the license. The restart of the factory became possible after the renewal of the special permit for subsoil use No. 2694 (Order of the State Service of Geology and Mineral Resources No. 591 of November 16, 2023).

In 2022, local taxes and paid rent for subsoil use amounted to over UAH 185 million. In 2023, due to the forced downtime, this figure decreased to UAH 85 million, and the staff was transferred to 2/3 of the previous salary level. In 2024, the company paid UAH 78 million in taxes at various levels.

As a result of a number of illegal decisions and the company’s downtime, the company estimates the damage caused to the state at least UAH 126 million.

In 2017-2019, Group DF invested over $7 million in the enrichment plant at Mezhirichny GOK, and the plant was commissioned in early 2019.

Group DF’s titanium mining business comprises two operating mining and processing plants – Mezhirichinsky GOK and Valky Ilmenite (both in Zhytomyr region) and two plants under construction – Stremigorodsky GOK (Zhytomyr region) and Motronovsky GOK (Dnipropetrovs’k region). The maximum design capacity of Mezhyrichny GOK is 180 thousand tons of ilmenite concentrate per year, while Valky Ilmenite’s capacity is 65 thousand tons.