Velta Group of companies with titanium ore mining assets in Novomyrhorod (Kirovograd region) produced 71 thousand tons of ilmenite in January-September 2024, while 104 thousand tons of this product were produced in the same period last year (down 31.7%).
“The reasons for the decline are obvious. The first one I would mention is the electricity supply, namely the price increase. Previously, electricity was in third place in the cost of production, but now it has confidently moved to the first position. If we talk about the period of 9 months of last year and this year, the growth was 35% and even more, since the price fluctuates from month to month, the maximum difference is 93%! Of course, this is compounded by limited supplies,” explained Andriy Brodsky, CEO and co-owner of the company, in response to an inquiry from Interfax-Ukraine.
According to him, logistics also continues to be a challenge, affecting production costs and hindering development. In addition, there is a critical situation with personnel: despite the fact that our titanium complex is recognized as critical, 15% of the staff serve in the Armed Forces.
“And if these problems have conditionally arisen since the beginning of the war, the government is adding new ones – increasing taxes. So far, I have heard from business colleagues that there is a strict link between tax payments and the status of a critical enterprise. If you don’t pay the increased taxes on time, your company immediately loses its status, and your employees lose their reservations and quickly receive summonses. I would say that now is the time for Ukrainian businessmen to make a choice without a choice,” the CEO believes.
As reported, Velta produced 25.409 thousand tons of ilmenite in 1Q2024.
Velta was registered in April 2000. The main activity is the extraction and production of ilmenite concentrate.
Velta Holding LLC owns 100% of Velta PCF LLC. The ultimate beneficiaries are three individuals: Andrii Brodskyi (60%), Vadym Moskalenko (20%) and Vitalii Malakhov (20%).
Velta group of companies with titanium ore mining assets in Novomyrhorod (Kirovograd region) has signed an agreement with international consulting company Hatch to design a titanium powder plant in the United States.
According to a press release on Tuesday, the agreement was signed between Velta Holding US Inc and Hatch.
It is noted that the new plant will be one of the first in the U.S. to operate based on Ukrainian low carbon footprint technology developed at Velta’s research center.
“This partnership agreement brings the Velta team closer to presenting the solution of Ukrainian scientists to the US titanium market, which is dangerously dependent on external supply chains,” the press service quotes Velta CEO Andriy Brodsky as saying.
At the same time, he expressed confidence that thanks to Hatch’s design expertise, the plant will be able to quickly and efficiently meet the demand for titanium for the countries that are Ukraine’s allies in the war.
The capacity of the first plant is designed for 1,000 tons per year of titanium powder with the potential to scale up in the future.
The company also emphasizes its intentions to build a similar plant in Ukraine.
Hatch is a leading consulting company for project design and implementation. The company’s professional experience includes projects in more than 150 countries in the metals, energy and infrastructure sectors, including four major TiO2 projects in Canada, South Africa and Senegal. The company also works closely with the communities where it operates its projects to avoid negative environmental impacts and promote economic development.
Velta Holding US, Inc. owns Velta LLC, a Ukrainian titanium feedstock producer that has built a titanium mining complex in Ukraine.
“Velta launched its R&D center in 2017 to develop a new method of titanium production. To date, the technology has already received two patents in the US.
PKF Velta LLC was registered in April 2000. The main activity is mining and production of ilmenite concentrate.
LLC VELTA Holding owns 100% of LLC PKF VELTA. The ultimate beneficiaries are three individuals: Andrey Brodsky (60%), Vadim Moskalenko (20%) and Vitaly Malakhov (20%).
Insurance company “VELTA” (Kiev) in January-March 2023 collected UAH 1,382 million of net premiums, which is 4.7 times less than during the same period a year earlier, according to an interim financial report of the company in the information disclosure system of the National Commission on Securities and Stock Market (NKTSBFR).
The report says that gross premiums of the company in the first quarter decreased by 2.2 times – to 2,727 million UAH, premiums transferred in reinsurance – 2.5 times, to 1,064 million UAH.
The company paid out UAH 73 ths in three months of 2023 against UAH 2 ths in the same period of 2022.
Its administrative costs decreased by 15% to UAH 2.034 mln and sales costs decreased 3.3 times to UAH 429 th. in the first three months of the year.
Financial loss from operating activities amounted to UAH 868 th., net loss – UAH 1,902 mln.
IC “Vielta” was registered in 1995, specializing in risky types of insurance.
Velta, with titanium ore mining assets in Novomirgorod (Kirovograd region), is currently operating at 50% of its capacity due to reduced electricity consumption due to the war, company president Andrey Brodsky said on Facebook on Friday.
“I am now in the office without electricity. There will be none today and tomorrow. I sent everyone home and I will also send myself. The mining and processing complex is operating at 50% capacity. But we cannot be stopped, we work in any conditions, we do not stop, because the Armed Forces of Ukraine also do not stop and even more – go forward! Hold on. We warm ourselves with thoughts of VICTORY,” the top manager wrote on his page on the social network.
PKF Velta LLC was registered in April 2000. The main activity is the extraction and production of ilmenite concentrate. Since 2012, it has been mining and processing titanium raw materials at the Birzulovsky deposit (Kirovograd region).
In addition, the company owns a license for the commercial development of the Lekarevsky analogous deposit.
Velta has repeatedly announced plans to build a vertically interned group from the extraction of raw materials to the production of finished titanium products.
Velta Holding LLC owns 100% of PKF Velta LLC. The ultimate beneficiaries are three individuals: Andrei Brodsky (60%), Vadim Moskalenko (20%) and Vitaly Malakhov (20%).
Velta US Inc (the United States), the parent company of Production and Commercial Company Velta LLC with assets for the extraction of titanium containing ores in Novomyrhorod, Kirovohrad region, from January 31 this year began a series of multi-round negotiations with American partners to develop a roadmap for interaction between the Ukrainian supplier of titanium raw materials and U.S. companies and institutions that are consumers of titanium.
In 2022, supplies to the North American market will account for 65% of Velta’s total production, according to a company press release. Such growth is dictated by the shortage of high-quality titanium raw materials in the United States, as well as the high level of American interest in Ukrainian titanium, which is fixed in the law on the budget for national defense.
It is especially important for Velta to start negotiations with American partners right now, Matthew Murray, a member of the advisory board of Velta US inc. and moderator of the talks, believes.
National Defense Authorization Act No. 6505 for Fiscal Year 2022 requires the U.S. Department of State within 180 days to draw up a report on reducing America’s dependence on titanium supplies from China and Russia, including by increasing supplies from Ukraine, the press release says.
“We are firmly convinced that the new stage of negotiations will help find new points of intersection between Velta and our American partners in the titanium industry,” Andriy Brodsky, the CEO of Velta, stated.
As reported, Velta US Inc intends to increase supplies of ilmenite concentrate to the U.S. by 15-23% in 2022. At the same time, in January, Velta held a meeting of the advisory board, formed in October 2021, to discuss further expanding the company’s presence in the U.S. market, taking into account the analysis of signed contracts for 2022.
Velta industrial and commercial firm LLC with titanium ore production assets in Ukraine (Kirovohrad region) has agreed to supply $100 million of ilmenite, a titanium feedstock, under a five-year supply contract with the Traxys Group, a global commodity trading group, aimed at meeting the needs of the North American market.
Velta said in press release that it has been working in the U.S. market for seven years.
“Given that North America is one of the most stable and fast growing markets, we have decided to enter a longer-term contract, which will ensure additional stability of the company’s operations,” CEO of Velta Andriy Brodsky said.
He said that the main competitive advantage of Velta is that the company produces high-quality high-titanium feedstock, which is currently scarce in the world and in great demand in the U.S. market.
“Titanium Dioxide pigment is a core business of our group. We are pleased to partner with such a high quality and reliable miner as Velta,” Traxys Head of Industrial Minerals Eli Skornicki said.
According to the press release, the ultimate consumer under the contract is Chemours. Chemours is a new kind of chemistry company driven by their purpose to create a more colorful, capable, and cleaner world through the power of chemistry. Chemours is one of the world’s largest manufacturers of titanium dioxide (TiO₂). The company’s Ti-Pure™ brand delivers industry-leading innovation to address the growing worldwide demand for high-quality TiO₂ by developing brighter, more efficient pigments for the coatings, plastics, and laminates markets. Its annual sales exceed $6.5 billion. Chemours employs more than 7,000 people worldwide.
Traxys, headquartered in Luxembourg, is a physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management and trading activities are conducted by over 400 employees, in over 20 offices worldwide, and its annual turnover is in excess of $7 billion. The group serves a broad base of industrial customers and offers a full range of commercial and financial services.
Velta LLC has been mining and processing titanium feedstock at Byrzulivske deposit in Kirovohrad region since 2012. The company also holds a license for the industrial development of Likarivske deposit with similar feedstock. From 2012 to 2019, Velta mined 1 million tonnes of ilmenite. The total number of jobs exceeds 500. Velta founded a research and development center Velta RD Titan that works on creating new methods for processing titanium feedstock.
CONTRACT, LUXEMBOURG TRAXYS, PRODUCTION, TITANIUM ORE, VELTA
