Sukhaya Balka mine (Kryvyi Rih, Dnipro region), part of Aleksandr Yaroslavsky’s DCH Group, increased crude iron ore production by 32%, or about 300 thousand tons, in the second quarter of this year.
The mine’s chief engineer, Igor Piltek, told DCH Steel’s corporate newspaper on Thursday that the production is short of workers in key job specialties. Therefore, the mine was forced to stop the technological process at the Frunze mine. The lack of a market for products also had a negative impact.
In addition, Yubileynaya mine is not yet being used to its full capacity, and the workforce is working depending on the situation with product shipments and the availability of qualified personnel.
“However, if we compare the performance of the first and second quarters of this year, we see an increase in production in the second quarter. Crude ore production increased by 32% to about 300 thousand tons, and commercial ore production by 42% (260 thousand tons) (…) This growth is primarily due to an increase in working hours. While at the beginning of the year the company’s team worked a reduced working week, in the second quarter, employees of the leading mining professions (sinking, mining, mine construction) returned to a full working week,” explained the chief engineer.
He also said that after the occupation of Mariupol and the destruction of Sukhoi Balka’s main consumer of ore, the company reoriented to another market: ore is being sold to Western partners, metal producers. The mine’s ore is consumed by steel mills in Slovakia, the Czech Republic, Hungary and Serbia.
“This spring, sales volumes increased, but in the summer, due to the crisis in the steel industry, we are seeing a decline. The shutdown of four blast furnaces at European steel mills reduced the need for raw materials. Sales volumes of the mine’s products decreased. We hope that the situation will improve in September,” said Piltek.
Commenting on the water situation, the chief engineer pointed to the shortage of water after the destruction of the Kakhovka hydroelectric power station. In particular, the lack of water affects the operation of the Central Compressor Station: the unit usually uses about 300 cubic meters of water, but in the current conditions, given the lack of resources, the company has developed a number of measures to reduce consumption. Significant savings have been made at Frunze mine, the industrial site of Yubileynaya mine, and auxiliary units. Water consumption was reduced by 30%.
It is also noted that difficulties with the company’s energy supply are expected in winter, so this year a new powerful generator was installed at Tsentralnaya mine to ensure the withdrawal of miners from the mine in case of a power outage.
“In the near future, we expect to receive five 20 kW generators to create a reserve and meet the needs of surface facilities,” added Piltek.
Sukha Balka mine is one of the leading mining companies in Ukraine. It produces iron ore by underground mining. The mine includes Yubileynaya and Frunze mines. DCH Group acquired the mine from Evraz Group in May 2017.
Sukha Balka mine (Kryvyi Rih, Dnipro region), part of Aleksandr Yaroslavsky’s DCH Group, has started mining block 116-122 at the Yubileynaya mine at the minus 1420 m horizon.
According to the DCH Steel corporate newspaper, preparatory work took six months. Production is scheduled for seven months.
It is specified that the new block 116-122 from the Gnezdo deposit of the fifth floor at the minus 1420 m horizon was commissioned on July 5. The new production capacity has 277.5 thousand tons of reserves.
“When we started cutting the block, many miners were mobilized. Therefore, we had to find a labor reserve, given the complications of the energy crisis,” explained Nikolay Puntus, chief engineer of the mine, as quoted by the publication.
The average iron content in the massif is 56.83%.
“We will get rich ore over the next four months, then the percentage of iron will be lower,” Puntus said.
Sukha Balka mine is one of the leading mining companies in Ukraine. It produces iron ore by underground mining. The mine includes Yubileynaya and Frunze mines. Frunze mine. DCH Group acquired the mine from Evraz Group in May 2017.
The DCH Group, uniting assets of Ukrainian businessman Oleksandr Yaroslavsky, under a strategy of increasing effectiveness of the mining and metal business has created DCH Steel, which will manage the respective assets: Dniprovsky Metallurgical Combine (DMZ, Dnipro) and Sukha Balka ore mining enterprise (Kryvy Rih).
According to the information on the official website of DCH, the essence of the transformation is to optimally build a management system for mining and metal enterprises at the stage of implementing large-scale investment projects.
According to DCH, Yaroslavsky plans to invest from $150 million to $200 million in his mining and metallurgical business over the next five years. Owning to these investments, in particular, the blast furnace stock of coke-chemical production will be restored at the DMZ and a continuous casting machine will be built, and at Sukha Balka it is planned to organize a processing plant, to develop ore deposit at deeper levels, and to upgrade equipment.
“In the process of gradual vertical integration, the production chain ore mining-enrichment-agglomeration-smelting of iron will be formed,” the group said.
According to the press release, at the level of DCH Steel, general management functions will be centralized, and manufacturing companies will focus their efforts on production and improvement of technology. The expected results of optimizing the management of the mining and metallurgical business of the DCH are to eliminate dependence on external supplies of sinter, to ensure a positive synergy of the activities of the DMZ and the mining enterprise, which should increase competitiveness and sustainability, as well as improve financial performance.
