On Friday, the Ukrainian government approved the terms of privatization of United Mining and Chemical Company (UMCC), which has been given control of Vilnohirsk Mining and Metallurgical Plant (VMMC, Dnipropetrovs’k region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), setting the starting price at UAH 3 billion 899.358 million.
“To take note of the starting price of the stake set by the advisor BDO Corporate Finance LLC in the amount of UAH 3,899,358,000 (three billion eight hundred and ninety-nine million three hundred and fifty-eight thousand),” the Cabinet of Ministers said in its resolution No. 643 of July 12 on its website.
It is specified that all 1 billion 944 million shares, which is 100% of the authorized capital, will be put up for sale.
Earlier, the State Property Fund pointed out that the sale of UMCC belongs to large-scale privatization, as it is the sale of state assets with a book value of more than UAH 250 million. Earlier, the SPF has already held auction commissions for the sale of the Ukraina Hotel, UMCC and the state share in the authorized capital of Lybid Investment Union LLC (Ocean Plaza shopping center). Auctions for the sale of these assets will be announced after the Cabinet of Ministers approves the starting prices and terms of sale. All auctions will be held in the state electronic system Prozorro.Sale. The proceeds from the privatization of state-owned enterprises will go to the state budget of Ukraine, and the proceeds from the privatization of nationalized assets will go to the fund for liquidation of the consequences of armed aggression.
The United Mining and Chemical Company began its actual operations in August 2014, when the Ukrainian government decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. On December 8, 2016, the state-owned enterprise was transformed into PJSC UMCC, and on December 26, 2018, it was transformed from PJSC to PrJSC.
UMCC used to sell its products to more than 30 countries. The main sales markets were the EU, China, Turkey, as well as the USA and African countries.
PrJSC United Mining and Chemical Company (UMCC), which has taken over management of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), has resumed mining titanium raw materials and the full operation of the open pits at Irshansk Mining and Processing Plant.
According to the company’s press release on Thursday, this branch was shut down in October 2022. This decision was made due to the lack of contracts for the sale of ilmenite concentrate and, at the same time, significant stocks of finished products in warehouses.
Currently, the management of UMCC has signed a large contract to sell the branch’s products to a strategic North American customer. Accordingly, there is a need to restore the plant’s full capacity.
“Back in April, we gradually started preparing for the full resumption of the branch’s operations, including the full resumption of production. We made all the necessary purchases and carried out as many repairs as possible. Now we have an active contract with an American end user for 70 thousand tons of ilmenite concentrate from Irshansk GOK,” said Yegor Perelygin, acting Chairman of the Board of UMCC.
According to him, another 25-40 thousand tons are currently under discussion. Additionally, the company is preparing to start negotiations for 30 thousand tons for a European end user, with a shipment plan for the fourth quarter of this year.
“Since we have almost sold the old stocks in our warehouses, which is good news, the resumption of quarrying is critical,” said Perelygin.
He specified that the company plans to produce 12 thousand tons of ilmenite concentrate per month by the end of this year.
“We understand that if there is an opportunity to increase production, we will definitely press the gas pedal. But there are several barriers and negative factors that constantly make adjustments to our production program. Everyone is well aware that we are in the active stage of the war and need to prepare for surprises or unplanned problems. In particular, it concerns the stabilization of electricity supplies to the plant,” added the CEO.
He also explained that UMCC has come a long way to qualify IGOK’s ilmenite concentrate for the North American market, and it is strategically important for the company to maintain this momentum until 2025, as then we can talk about long-term contracts and long-term product qualification.
“My personal dream is that 2/3 of IGOK’s products should be exported to the market that is strategic for us as a country and that our cooperation with the American chemical industry should only strengthen and the volumes should grow. This will allow us to move to planning horizons of 1-3 years, even during the war, and will have a good stabilizing effect,” Perelygin explained.
According to him, this will also allow us to move to a broader development of the local resource base, in particular by returning to the implementation of the capital investment program.
“Unfortunately, due to the lack of long-term money and a large number of unpredictable events, the last two years have been practically on hold,” summarized the acting chairman of the board of UMGC.
United Mining and Chemical Company started its actual operations in August 2014, when the Ukrainian government decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. On December 8, 2016, the state-owned enterprise was transformed into PJSC UMCC, and on December 26, 2018, it was transformed from PJSC to PrJSC.
UMCC used to sell its products to more than 30 countries. The main sales markets were the EU, China, Turkey, as well as the USA and African countries.
PrJSC United Mining and Chemical Company (UMCC), which manages Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast), spent over UAH 37 million on equipment repairs and maintenance in January-March this year.
According to the company’s press release, active repairs and restoration of mining equipment at UMCC are underway.
It is specified that in the first quarter of 2024, one of the key areas was the repair and purchase of necessary spare parts to ensure that the equipment operated smoothly.
Thus, VGMK’s branch purchased spare parts for critical process chains, purchased 5 running parts for bulldozers, restored 5 BelAZ mining dump trucks, and put all 5 operating BELL dump trucks on line.
At the branch of IGOK, the funds were used to maintain machinery and equipment in good working order to quickly get involved in work processes if necessary.
“These measures preceded the operational launch of the enrichment production in April 2024. Thus, step by step, we continue to establish the stable operation of the company,” UMCC said in a statement.
As reported, UMCC received UAH 30 million in net profit in Q1, while in the same period last year it made a loss.
The United Mining and Chemical Company has been operating since August 2014, when the Ukrainian government decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. On December 8, 2016, the state-owned enterprise was transformed into PJSC UMCC, and on December 26, 2018, it was transformed from PJSC to PrJSC.
UMCC used to sell its products to more than 30 countries. The main sales markets were the EU, China, Turkey, as well as the USA and African countries.
PrJSC United Mining and Chemical Company (UMCC), which has taken over management of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), posted a net profit of UAH 30 million in January-March this year, compared to a loss in the same period last year.
According to the company’s press release on Monday, the company planned to make UAH 20 million in net profit in the first quarter.
According to Yegor Perelygin, First Deputy Chairman of the Board, the last months of 2023 were difficult, but despite this, the management managed to lay a strong foundation for 2024.
“We have made every effort to ensure that our titanium giant operates even in difficult military conditions. Numerous negotiations with contractors and expansion of the geography of end customers are our main task, which we are successfully implementing. We have successfully rebuilt our logistics and alternative supply routes. Today, the brand of the state-owned company UMCC is returning to the EU markets and strengthening in the US. We already have contracts in place for about 135,000 tons, and the planned volumes are more than 200,000 tons,” said Perelyhin.
He added that the company’s branches – IGOK and VMMC – are currently fully loaded in accordance with their plans. The required categories of employees are booked and there are no salary arrears.
At the same time, all work to stabilize the company’s operations is carried out in close cooperation between management and the State Property Fund. As a result, current issues are addressed in a more comprehensive manner, which demonstrates effective results.
The United Mining and Chemical Company started its actual operations in August 2014, when the Government of Ukraine decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. On December 8, 2016, the state-owned enterprise was transformed into PJSC UMCC, and on December 26, 2018, it was transformed from PJSC to PrJSC.
UMCC used to sell its products to more than 30 countries. The main sales markets were the EU, China, Turkey, as well as the USA and African countries.
PrJSC United Mining and Chemical Company (UMCC), which has taken over management of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), has started selling titanium raw materials to Italy, Spain, Germany and is systematically expanding its exports.
According to the company, despite the difficulties and risks of wartime, it shipped more than 102 thousand tons of products in 2023. The planned supply volumes for 2024 are 200 thousand tons.
Yegor Perelygin, First Deputy Chairman of the Board of UMCC, quoted in the information, noted that due to effective approaches and communication with potential buyers, the company signed contracts for the supply of approximately 80 thousand tons in the fourth quarter of 2023 and the first quarter of 2024.
“We were able to attract a series of subscriptions for finished products from stable market players and open new ways to supply world-class end users. We have integrated the coordination and logistics management functions in the commercial unit, become more flexible and focused on an individual approach to strategic customers. As a result, we have opened the UMCC brand to well-known end users in Italy, Spain and Germany,” he explained.
Mr. Perelygin added that by the end of the second quarter of this year, UMCC’s rutile and zircon may become absolutely regular and key components in the raw material portfolios of major processors in Italy, Spain and Germany.
At the same time, companies in the United States and the Czech Republic remain strategic partners for UMCC’s ilmenite concentrate. We are also launching export deliveries of Irshansky GOK’s ilmenite to one of the largest end users in North America. The company plans to sell about 60 thousand tons in the near future. The company emphasizes that the supply chain and end users of these products are strictly controlled by the company and law enforcement agencies.
“Our success is due to our large team. These are more than 4,000 professionals who work in the NONstop mode. Together, we have made a good start for 2024 and are moving step by step towards our strategic goal of producing value-added products and significantly curtailing the aggressor’s influence in the markets of critical minerals and strategic materials,” summarized Perelygin.
The United Mining and Chemical Company started its actual operations in August 2014, when the Ukrainian government decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. Previously, these plants were leased to Firtash’s structures. Then the company was transformed into a PJSC and then into a PrJSC.
In August 2016, the government included UMCC in the list of companies to be privatized in 2017. Its deadline was postponed several times, and the tender was disrupted twice.
UMCC used to sell its products to more than 30 countries and was one of the world’s largest producers of titanium raw materials, accounting for 4% of the global market. The company mines titanium ore.
PrJSC United Mining and Chemical Company (UMCC), which manages Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipro region) and Irshansk Mining and Processing Plant (IGOK, Zhytomyr region), has discussed with potential customers the supply of over 200 thousand tons of titanium ore next year.
According to the company’s press release, the discussion of possible supplies took place at the 17th annual TZMI Congress, the largest exhibition of the global titanium industry, which took place in Singapore.
Thanks to the event, which brought together the largest players in the titanium market, UMCC representatives held a number of meetings to expand international cooperation and plan supplies for 2024. In particular, preliminary negotiations were held with leading companies from America, Japan, the UK and the European Union.
“The total volume of supplies discussed for the next year is more than 200 thousand tons of UMCC products. We have now started working on the next stages of negotiations with counterparties and procedures preceding the signing of contracts. We hope that the expansion of cooperation, which we are now actively working on, will help increase the economic stability of the company,” said Dimitri Kalandadze, Deputy Chairman of the Board of the company, as quoted by the press service.
At the same time, he stated that the blockade of export routes and shelling of maritime infrastructure by Russia lead to disruptions in the delivery of products to customers. This directly affects the image of Ukrainian exporters and delays payment for goods. However, in such circumstances, it is very important to develop alternative ways of cooperation and expand it. This is a priority for the company’s management, summarized the Deputy Chairman of the Board.
The United Mining and Chemical Company started its actual operations in August 2014, when the Ukrainian government decided to transfer the property complexes of Vilnohirsk Mining and Metallurgical Plant (VGMK, Dnipropetrovska oblast) and Irshansk Mining and Processing Plant (IGOK, Zhytomyrska oblast) to its management. Previously, these plants were leased to Firtash’s structures. Then the company was transformed into a PJSC and then into a PrJSC.
In August 2016, the government included UMCC in the list of companies to be privatized in 2017. Its deadline was postponed several times, and the tender was disrupted twice.
UMCC used to sell its products to more than 30 countries and was one of the world’s largest producers of titanium raw materials, accounting for 4% of the global market. The company mines titanium ore.
