Business news from Ukraine

Krivoy Rog’s Rudomain has reduced iron ore production by 25%

LLC “Rudomain” (Krivoy Rog, Dnipropetrovsk region), engaged in iron ore mining, reduced iron ore production in Krivoy Rog by 25% from 2022 and production in 2023 was at 50% of capacity.

The company told Interfax-Ukraine that Rudomain continues its operations, but the number of employees has been reduced from 1,250 to 950 due to mobilization in Ukraine. Replenishment of personnel occurs only in cases of extreme necessity, including the integration of women into traditionally male-dominated professions.

It is noted, however, that there has been a marked decline in sales since 2022, resulting in a drop in production of up to 75% compared to the pre-war period. In 2023, the downward trend continues and production is held at 50% of potential maximum production capacity throughout the year, which corresponds to a zero breakeven level.

By markets: Rudomain’s products are sold to countries in the near abroad, mainly in Poland and Slovakia. Historically, sales have been made exclusively by rail, thus avoiding maritime transportation problems.

Plans for 2024: sales are planned to increase based on the use of repair and renovation funds for machinery and technology. Failure to generate these funds in year 23 could be a problem in the next year.

“Actively working on plans to increase automation of manufacturing processes to reduce production costs,” the company’s response states.

And it is noted in terms of the impact of the economic downturn in Europe and the way forward: the general downturn in economic development in Europe is being felt.

“Entering new markets requires a significant increase in the global cost of production to cover logistics costs and unblock seaports. The key factors for improving the investment climate are the end of the war, the return of professionals to their jobs and renewed confidence in the state,” the response summarizes.

Rudomain LLC was registered in May 2010. Its main activity is iron ore mining. According to the company, it is active in Ukraine, the CIS and Europe. Since 2005, it has processed more than 20 million tons of substandard ores from the Krivoy Rog iron ore basin.

As of the end of 2020, two concentrators were up and running. The production capacity of the plant was up to 4 million tons of feedstock per year with Fe min 38%. Production of finished products with Fe content of 50-59% (fraction 0-10 mm) was about 1.5 million tons per year.

According to the Unified State Register of Legal Entities as of September 2021, ARDC Mining Asset Management Holding Ltd (Cyprus) owns 100% of Rudomain LLC. The ultimate beneficiary is a Cypriot citizen Andreou Katia.

Previously, the owner of Rudomain LLC was Fernando Trading Ltd (West Indies) with the ultimate beneficiary being resident individual Anatoly Medvedev.

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