KRYVY RIH. Sept 11 (Interfax-Ukraine) – Pivdenny Mining (Kryvy Rih, Dnipropetrovsk region) plans to increase investment in development and maintenance of its production facilities to UAH 922 million in 2015, which is 32% up on 2014, Director General Kostiantyn Fedin said at the press tour at the mining plant on Wednesday.
He said that investment have sharply increased after the arrival of new investors in 2010.
“Since 2010, with the arrival of new shareholders, investment has increased and production has grown,” he said.
Fedin said that if in 2010 around 19.6 million tonnes of iron ore was made a year, not 24.5 million tonnes is made. The iron ore concentrate target for 2015 is 11.2 million tonnes.
He said that in 2010 investment totaled UAH 321 million, while in 2014 it was over UAH 700 million and in 2015 it is planned to invest over UAH 900 million (around UAH 922 million).
The top manager said that since 2010, the plant started building the conveyor ore transportation line, and the first phase was launched in 2013 and the second phase – in 2014.
Fedin said that today the plant is working on the verge of profit-making.
He said that production cost of one tonne of concentrate is $20-24, and logistics cost – $27.30 per tonne.
At present, the price of iron ore concentrate at a Chinese port is $56 per tonne.
Pivdenny Mining exports 80-90% of iron ore concentrate, while agglomerate is sold on the domestic market.
Pivdenny Mining is one of the main iron ore producers in Ukraine.
Pivdenny Mining is under control of Metinvest and Lanebrook Ltd. (a majority shareholder of Evraz Group), which acquired 50% of shares in Pivdenny Mining in 2007 from Privat Group (Dnipropetrovsk).
KYIV. Sept 11 (Interfax-Ukraine) – United Mining-Chemical Company state enterprise, which manages Vilnohirsk state mining and metallurgical plant (Dnipropetrovsk region) and Irshansk state mining and processing plant (Zhytomyr region), increased sales revenue on the domestic and foreign markets by 80% in January-July 2015 compared to the beginning of the year, to UAH 730 million.
The company said in a press release on Monday, referring to First Deputy Director General Oleksandr Hladushko, that if in February 2015 the company’s revenue for core products – ilmenite, rutile and zircon – did not exceed UAH 91 million, in July it totally exceeded UAH 165 million, which is 1.8 times more than at the start of the year.
The growth in revenue is linked to boosted sales.
“On the global titanium market crisis is only worsening and prices of our products continue falling, while revenue grew only thanks to growth of sales,” Hladushko said.
The marketing and sales department was able to resume cooperation with former clients of Vilnohirsk state mining and metallurgical plant and Irshansk state mining and processing plant in January-July and also found new clients, namely Jiangsu Sainty Machinery Corp (China), Mario Pilato (Spain) and China National Light Industrial Products Co (China).
The plants continue to focus on exports. In January-July the share of exports in ilmenite sales by Vilnohirsk state mining and metallurgical plant was 83%, rutile – 93% and zircon – 97%, while ilmenite sales by Irshansk state mining and processing plant totaled 100%.
“We’re working on the reorientation of Irshansk plant’s products to global markets, although before the plant was returned to state ownership from leasing by Crimea Titan it sold products only in Ukraine for almost 10 years, using the same system. It is hard to return the plant’s products to the global market, as all trade relations of the plant with the world were lost for a long period of time,” Hladushko said.
United Mining-Chemical Company sells its products in over 30 countries. Its main markets are the European Union, China, Turkey, the United States and African countries.
United Mining-Chemical Company started operating in August 2014 when the Ukrainian government decided to transfer Vilnohirsk state mining and metallurgical plant and Irshansk state mining and processing plant to its management.
KYIV. Sept 11 (Interfax-Ukraine) – Ukrainian President Petro Poroshenko expects the Ukrainian economy to start recovering in 2016.
“I expect that we will be able to show GDP growth in 2016,” he said at the 12th Annual Meeting of the Yalta European Strategy (YES) in Kyiv on Friday.
Poroshenko said that Ukraine has managed to considerably cut inflation, stabilize the financial and banking systems, and has implemented budgetary discipline.
“Am I optimistic about the economic situation? I would say “yes!” he said.
Poroshenko said that Ukraine will also improve its investment climate, regardless of any obstacle, thanks to tax reform, although the country requires the support of foreign investors.
According to the government’s forecast as of August 2015, under the optimistic scenario, Ukraine’s GDP will grow by 2% in 2016 with inflation of 12% (December on December). However, the government’s macroeconomic forecast also includes a pessimistic scenario, under which GDP will fall by 0.3% with inflation of 14.7%.
The International Monetary Fund (IMF) and the Ukrainian government in the middle of this year revised its GDP decline forecast downwards – to 9% in 2015 with inflation of 45.8%. The National Bank of Ukraine (NBU) projects that GDP will fall by 9.5%, with inflation of 48%.
KYIV. Sept 10 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine would find funds to build a new runway at Odesa airport in 2016, Infrastructure Minister of Ukraine Andriy Pyvovarsky has told Interfax-Ukraine.
“Taking into account the top-priorities for the region, the budget would find funds to finance this project,” he said, asked about the start of construction of the runway in 2016.
He said that the cost of the project could considerably differ from the initially announced sum (UAH 1.6 billion) and it would vary within $80-200 million.
He said that several alternative projects to create the runway at Odesa airport are being discussed – from reconstruction of the old runway to construction of new one.
The minister said that it is impossible to finish construction of the runway in 2016, and it is likely that it would be finished in 2017.
KYIV. Sept 10 (Interfax-Ukraine) – Public joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the only Ukrainian producer of heavy trucks, has signed contracts to supply trucks with its long-term partners in Georgia and Moldova, the company’s press service has reported.
AvtoKrAZ spokesperson Dina Stehantseva told Interfax-Ukraine can now announce a resumption of supplies after a long break: the last supplies to Moldova were in 2008 and to Georgia – in 2012.
According to the press release, special purpose KrAZ trucks with KrAZ 63221 6×6 chassis will be produced for the customer in Georgia.
An ATZ-11 tanker will be installed on the chassis for shipping light fuel, and a chassis with double-tire wheels will have equipment for transporting various products.
The two types of the trucks will have Euro 3 Ford engines, an MFZ-430 engine clutch, and a Fast Gear unit.
“We only recently started installing Ford engines to mass-production trucks, and buyers have showed their interest to these trucks and we’ve started receiving orders on them,” Stehantseva said, adding that the company hopes that the Georgian partner could order more trucks in the future.
The plant would produce dump trucks KrAZ-65055 (6х4) with a capacity of 12 cubic meters for the customer from Moldova.
The trucks will be used to ship stone.
AvtoKrAZ makes 33 basic vehicle models, and more than 260 modifications and trim levels for civilian and military vehicles.
KYIV. Sept 10 (Interfax-Ukraine) – The National Commission for Communications Regulation (NCCR) has approved the financial plan of the Ukrainian State Center of Radio Frequencies for 2016.
The press service of the center reported that according to the plan, net sales revenue will total UAH 374.4 million, which is 1.1% up on projected revenue in 2015.
It is expected that taxes, duties and other mandatory payments to budgets of all levels will total UAH 149 million.
Capital investment will be formed thanks to the funds of the company and tough control of financial expenses, in particular, via the ProZorro system, which sub-threshold goods (service) and labor procurement have been switched to. The funds accumulated this way will be allocated to develop the material and technical base.
“The key indicators of the 2016 financial plan approved by NCCR give grounds to speak about the further dynamic development of the enterprise,” CEO Yaroslav Yanushevych said.
