Canadian mining company Black Iron Inc. with assets in Ukraine has started the active process of obtaining permits for iron ore mining within the framework of the implementation of the new Shimanovskiy iron ore project in Kryvyi Rih. According to the materials available to Interfax-Ukraine, a subsidiary of Shimanovskoye Steel LLC has applied for a permit for open-pit iron ore mining in the northern part of the Shimanovskoye open pit.
It is planned that the total volume of overburden ore will be 5.13 million cubic meters, including 1.31 million cubic meters of ore, and the open pit will be 660 meters by 390 meters and 80 meters deep. It is also expected to produce 4.5 million tons of ore per year during year-round operation.
As reported, Black Iron Inc. continues to advance the Shimanovskoye iron ore project, having prioritized it by concluding an investment agreement with the country’s government. The main issue remains the obtaining of a land plot under the jurisdiction of the Ministry of Defense. Discussions with the Ministry of Defense have led to an agreement on the preliminary amount of money that Black Iron will have to pay as compensation for obtaining this land for its use.
The Company has also stated that it is considering new potential projects.
In October 2010, Black Iron acquired the Cypriot subsidiary of Geo-Alliance Ore East Limited, along with licenses, from the EastOne investment group of Ukrainian businessman Victor Pinchuk for $13 million, then renaming it BKI Cyprus. Its main assets are 99% in Shimanovskoye Steel LLC and Zelenovskoye Steel LLC (both in Dnipro).
In July 2013, after a number of problems with the implementation of the project, Black Iron Inc. announced an agreement with Ukraine’s largest mining and metallurgical group Metinvest to develop its iron ore assets. Metinvest B.V. paid Black Iron Inc.$20 million and acquired a 49% stake in BKI Cyprus. However, Metinvest later withdrew from the project.
The Shimanovskoye iron ore deposit is surrounded by five other operating mining operations, including ArcelorMittal’s iron ore complex. Existing infrastructure, including access to power, rail and port facilities, Black Iron believes will allow the project to ramp up to production quickly.
According to the presentation dated May 2021, the expected capital investment for the launch of the first phase is estimated at $452 million, the second – $364 million. The project envisaged the construction of a plant for the production of premium iron ore raw materials with an iron content of over 68% with a capacity of 4 million tons per year in the first phase and 8 million tons per year in the second.
LLC Shimanovskoe Steel was registered in June 2007. Black Iron (Cyprus) owns 100% of Shimanovskoye Steel. The authorized capital is UAH 193 mln 677,830 th.
