Business news from Ukraine

Khmelnitsky “Maidan-Vilsky quarry” plans to expand production and mining

Maidan-Vilsky quarry LLC, part of Golden Tile ceramic group, intends to expand production and continue mining.
According to documentation available to the Interfax-Ukraine agency, it is expected to “conduct an environmental impact assessment procedure in connection with the expansion and changes in the planned activities for the construction and subsequent operation of the feldspar feldspar charge magnetic enrichment complex by the wet method.”
The timing of the environmental impact assessment is not disclosed.
Golden Tile Ceramic Group is a vertically integrated group of companies providing a full cycle of production and distribution of ceramic tiles.
According to the official website of the group, its structure includes PrJSC Kharkiv Tile Plant (Kharkiv), Maidan-Vilsky Quarry LLC, Maidan-Vilsky Refractories Plant LLC (both in Khmelnytsky region), PA Shakhtostroy (Donetsk region) and Golden Tile LLC (Kiev, official distributor of the Kharkiv Tile Plant).

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Moldova banned cryptocurrency mining

The Commission for Emergency Situations of Moldova has banned cryptocurrency mining in the country, as well as the import of equipment for it.

According to the decision of the Commission on Emergency Situations, this is one of the measures taken in connection with the energy crisis.

Among other measures – the requirement for the owners of the premises to use heating devices so that the temperature in the room during working hours does not exceed 19 degrees, and outside of working hours – 15 degrees. Also, the owners of the premises will have to abandon advertising, decorative and architectural lighting, as well as turn off the fountains.

In addition, indoor escalators must be suspended from 7 am to 11 am and from 6 pm to 11 pm.

At the end of October, Moldova faced an energy crisis after Ukraine stopped exporting 30% of the electricity needed by the country, and the Moldavskaya GRES cannot supply the contracted 70% due to the reduction in gas supplies to Moldova from Gazprom. So far, urgently during the period of shortage, Moldova buys electricity from Romania.



Coal mining enterprises of Ukraine in January 2022 reduced production of coal by 1.8% (by 46,800 tonnes) compared to the same period last year – to 2.534 million tonnes, according to the data of the Energy Ministry.
According to the calculations of the Interfax-Ukraine agency, in particular coal mining enterprises under the control of the ministry last month reduced production by 0.2% – to 329,600 tonnes.
The mines of Donetsk region in January 2022 ensured the production of 1.053 million tonnes of coal (down 4.8% compared to January 2021), Luhansk region – 21,200 tonnes (down 1%), Dnipropetrovsk – 1.386 million tonnes (up 3.6%), Lviv region – 68,800 tonnes (down 39%), Volyn region – 4,200 tonnes (up 3.1 times).
As reported, Ukraine in 2021 increased production of coal by 2% compared to 2020 – to 29.388 million tonnes. Production of steam coal amounted to 22.153 million tonnes, coking coal – 7.234 million tonnes.

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Mining enterprises of Ukraine in January-September of this year, according to recent data, increased exports of iron ore raw materials (iron ore) in monetary terms by 2.04 times compared to the same period last year, to $5.95 billion.
According to preliminary generalized statistics released by the State Customs Service, in monetary terms, iron ore exports in September amounted to $472.96 million, while in September 2020 – $387.3 million.
As reported, in 2020 Ukraine increased iron ore exports by 16% compared to the previous year, to 46.293 million tonnes, while foreign exchange earnings from iron ore exports increased by 24.7%, to $4.239 billion.

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The revenue of Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and smelting group, in April 2020 decreased by 13.2%, or $113 million compared to the previous month, to $742 million from $855 million. According to the company’s preliminary unaudited consolidated monthly financial statements, EBITDA for April totaled $126 million, which is $45 million less than in March ($171 million), while EBITDA from participation in joint venture was $15 million (in March $28 million).
According to the report, the adjusted EBITDA of the group’s metallurgical division in April 2020 amounted to $64 million (in March $108 million), including “minus” $1 million from participation in joint venture (“minus” $3 million). The mining division’s EBITDA is $94 million ($100 million in March), including $16 million ($31 million) from joint venture. The management company’s expenses amounted to $6 million ($9 million).
The total revenue in April consisted of $580 million of the metal division (in March $672 million), $240 million from mining ($277 million), and $78 million of intra-group sales ($94 million).

The total debt of the company in April decreased by $34 million compared with March, to $3.073 billion from $3.107 billion. At the same time, the amount of cash decreased by $58 million, to $270 million from $328 million.
The funds used in investing activities amounted to $67 million, in financial activities $11 million.

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Poltava mining and processing plant (PGOK, Ferrexpo Poltava Mining, Horishni Plavni, Poltava region), the largest producer of iron ore pellets in Ukraine, by the decision of its sole shareholder, Swiss-based Ferrexpo AG, intends to increase its charter capital by 62.3%, or UAH 1.185 billion through an additional issue of shares without public offering.
The corresponding issue of shares was registered by the National Commission for Securities and the Stock Market of Ukraine on October 18.
At the time of the decision on the issue (July 31 of this year), the charter capital of PGOK amounted to UAH 1.902 billion and was divided into 191 million shares with a par value of UAH 9.96. The sources of increase in the charter capital are cash in foreign currency.
The term for the placement of shares is from October 4 to November 20 of this year.
As reported, Ferrexpo AG, which owned a 99.1167% stake in PGOK, in June of this year forcibly bought back shares from minority shareholders under a squeeze-out procedure and increased its stake to 100%. The buyback price amounted to UAH 34.24.
Ferrexpo Plc, which owns 100% of Ferrexpo AG, which in turn owns 100% of Poltava GOK and 100% of Yeristovo GOK, is traded on the London Stock Exchange (LSE).
Since the beginning of July this year, the price of Ferrexpo shares on the LSE fell by almost 2.1 times, to GBP1.354 per share, which is the lowest level since January 2017.

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