Metinvest Group’s Central, Ingulets and Northern Mining and Processing Plants (MPPs), which were transformed into United Mining and Processing Plant (UMPP), paid UAH 2.8 billion in taxes in January-June 2024.
According to the company’s press release on Thursday, in the same period of 2023, YuGOK, Central GOK and InGOK transferred UAH 1.4 billion to the state and municipal budgets.
“Despite the ongoing war, economic difficulties and challenges, Metinvest’s Kryvyi Rih enterprises remain one of the largest taxpayers and a strong pillar of the region and Ukraine,” the company said.
It is specified that in the first half of 2024, the main sources of budget revenues from Northern GOK, Central GOK and InGOK were the subsoil use tax – UAH 1.7 billion. The treasury also received a single social contribution of almost UAH 357 million and personal income tax of UAH 318 million. The list of the largest contributions includes land fees and environmental tax.
According to the press release, Kryvyi Rih enterprises remain the largest employer in the region. In addition, the GOKs continue to support Kryvyi Rih and the community by implementing joint humanitarian, educational and infrastructure projects.
As a reminder, in the first half of 2024, Metinvest Group increased its tax payments to the Ukrainian budget by one and a half times, to UAH 10 billion.
As reported, Metinvest is implementing a new model for the operation of Kryvyi Rih mining enterprises, uniting mining and processing plants in Kryvyi Rih under one management.
“Given the current challenges, with no objective way to bring the workload of the GOKs to the optimal level, we are looking for the effect of combining their capabilities and business processes. To this end, the company sees its GOKs not as separate facilities with separate teams, but as one large production site and one large team, and tries to use the advantages of each GOK in a single technological chain. The creation of a single administrative and management center, so to speak, a consolidated GOK, will significantly simplify, speed up and increase the efficiency of these processes, as well as contribute to the creation of new synergies between the enterprises,” explained Yuriy Ryzhenkov, CEO of Metinvest, earlier.
In 2023, Metinvest’s Kryvyi Rih enterprises paid a total of UAH 4.6 billion in taxes and fees to the budgets of all levels.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
In 2023, Metinvest Group’s Central, Ingulets and Northern Mining and Processing Plants (GOKs) implemented investment projects aimed at ensuring the stability of production processes and overhauling machinery and equipment, using a total of UAH 2.3 billion.
According to the company’s press release, last year, Metinvest’s Kryvyi Rih mining enterprises invested in projects to improve productivity, product quality, ensure the smooth operation of key equipment, and reduce the cost of producing iron ore.
The main projects implemented last year at Pivdennyi GOK included the modernization of sections and the installation of a new economical engine on the 2TE10M diesel locomotive, which is used to transport ore from the Pervomaisky open pit to the first crushing plant. It also includes the installation of roller screens for raw pellets at the LURGI-552A roasting machine to maintain competitive positions in the European iron ore market.
To ensure that the concentrate moisture content is met, a new vacuum filter was installed at Ore Dressing Plant No. 1 and a vacuum pump was replaced at Ore Dressing Plant No. 2.
Last year, Central GOK completed an important energy efficiency project. Pumping equipment was replaced at the facilities of the sludge management and technical power supply shops to reduce electricity costs. The company also launched a project to build a complex of treatment equipment to provide the plant’s facilities with drinking water.
The report emphasizes that even in the midst of the war, the program to improve working conditions at the plant continues. Repairs were carried out in the canteens of the Petrovsky open pit, crushing and concentrating plants. The crusher’s administrative and amenity building had its showers overhauled.
Last year, the bulk of capital investments at Ingulets Mining and Processing Plant were directed to projects to maintain production capacity, namely the reconstruction of the tailings dump. To ensure the smooth operation of the technological chain for the extraction and production of concentrate, the plant is preparing additional tanks for storing production residues.
Another major project of the year, which will ensure the development of mining operations at InGOK, concerned the rebuilding of railway tracks at the open pit horizons and the extension of the open pit and dump railroad dead ends.
A significant portion of the GOK’s investments was directed to overhauling machinery and equipment. To ensure uninterrupted mining and transportation of rock mass, the enterprises repaired dump trucks, bulldozers, dump trucks, motor-wheel sets, railway tracks and switches. Crushing and processing plants overhauled sections, crushers, dredgers, grab cranes, floors and fencing structures.
To maintain pellet production at the required level, the roasting machines LURGI 552 A and LURGI 552 B at Northern GOK and OK-324 at the pelletizing plant of Central GOK were shut down for repairs. At the same time, the companies implemented a number of projects to save energy, organize a safe working environment, maintain infrastructure facilities, etc.
“In total, in 2023, Kryvyi Rih GOKs utilized a total of UAH 2.3 billion in investments to maintain production capacity. During the war in 2022-2023, Metinvest Group was recognized by Forbes Ukraine as one of the largest Ukrainian investors. The company’s capital investments during that time amounted to UAH 22.7 billion. Currently, Metinvest’s investment strategy is focused on maintaining the operability of its assets,” the press release states.
As reported earlier, Metinvest is implementing a new model for its Kryvyi Rih mining operations by uniting its mining and processing plants in Kryvyi Rih under a single management.
“Given the current challenges, with no objective way to bring the workload of the GOKs to the optimal level, we are looking for the effect of combining their capabilities and business processes. To this end, the company sees its GOKs not as separate facilities with separate teams, but as one large production site and one large team, and tries to use the advantages of each GOK in a single technological chain. The creation of a single administrative and management center, so to speak, a consolidated GOK, will significantly simplify, speed up and increase the efficiency of these processes, as well as contribute to the creation of new synergies between the enterprises,” explained Yuriy Ryzhenkov, CEO of Metinvest, earlier.
“Metinvest comprises mining and metallurgical enterprises located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
