Vilnohirsk state mining and metallurgical combine (Dnipropetrovsk region) and Irshansk state mining and processing combine (Zhytomyr region), incorporated in PrJSC United Mining-Chemical Company, have claimed the absence of operational guidance by the head office, threatening a failure to comply with international obligations and large fines.
To normalize the situation in the company, the directors of the branches of Vilnohirsk combine and Irshansk combine sent letters to the president and prime minister of Ukraine, as well as to the SBU, the Ministry of Internal Affairs and the State Property Fund with a request to intervene the situation and stabilize the work of the branches and the company in general.
According to the letters, copies of which the Interfax-Ukraine agency saw, the branches and representative offices are separate divisions of the legal entity United Mining-Chemical Company and cannot independently conduct business activities. At the same time, a situation has now arisen when branches operate under conditions of limited authority and in the complete absence of managerial decisions on the part of the management of United Mining-Chemical Company.
The top managers of the branches are also concerned about the possible financial difficulties in their activities, stating that the management of United Mining-Chemical Company does not respond to letters from the branches regarding the provision of proper management of the financial and economic activities of the branches by the management of the parent company.
Due to the lack of funding for the activities of Vilnohirsk combine and Irshansk combine, there is a real threat of a complete shutdown of enterprises, the branches said in the letters.
The directors’ appeals provide data on the payment of taxes and it is noted that if the branch are halted, local budgets will not receive significant funds. In addition, failure to fulfill contracts for the supply of products will result in fines of approximately $15.541 million for Irshansk combine and $67.392 million for Vilnohirsk combine. At the same time, the total loss from halting Irshansk combine will be about UAH 800 million, and Vilnohirsk combine – UAH 1.2 billion.
Given this, both branch directors appealed to the country’s leadership, ministries and departments with a request to take urgent measures to ensure effective management of the company and divisions.
Private joint-stock company United Mining-Chemical Company, managing Vilnohirsk Mining and Metallurgical Combine (Dnipropetrovsk region) and Irshansk Mining and Processing Combine (Zhytomyr region), invested large sums in the development of Vilnohirsk Mining and Metallurgical Combine in 2017-2018.
According to a press release of the company at the end of 2018, referring to acting Board Chairman Oleksandr Hladushko, starting from 2017, the company acquired 46 units of equipment for the Vilnohirsk combine – modern BELL dump trucks, which significantly supplemented the existing fleet, as well as JCB loaders, which will be used not only in the quarry, but also in repairs and loading finished products, a MAZ vehicle to move repair crews, cars, as well as the heavy trailer, which will allow to quickly carry bulldozers and other heavy equipment.
According to him, the company spent about UAH 300 million on these acquisitions, of which more than UAH 195 million were paid for the new BELL dump trucks.
In addition to acquiring new equipment, the company invested heavily in the repair of the existing one.
According to Deputy Chief Mechanic for transport, the head of the section for the repair of transport, Oleksiy Belousov, thanks to the gross restoration of dump trucks, the company has 21 operating BelAZ vehicles today. The company spent more than UAH 11 million on the restoration of old BelAZ vehicles.
The Vilnohirsk combine’s overburden complexes received significant investments – this year alone, more than UAH 50 million were spent on restoring their working capacity, Hladushko said.
In 2018, several significant upgrades were also made at the combine’s concentrator. This technological solution has significantly reduced grinding losses and increased extraction of the useful component to 99%.
Processing division upgraded its assets for the amount of over UAH 20 million.
In 2018, investments into the Vilnohirsk combine were sent to the renewal of assets, overhauls, and the commissioning of the stripping and mining equipment of the enterprise.
“With updating the fixed assets of the Vilnohirsk branch, we expected a certain result – to maintain a high level of efficiency and competitiveness of the enterprise, which will allow us to look confidently into the future,” Hladushko said.
According to him, in 2019, investments in the development of the main divisions of the plant, in particular the quarry, will continue.
INVESTS, MINING METALLURGICAL COMBINE, MINING-CHEMICAL COMPANY, VILNOHIRSK
