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).
