Business news from Ukraine

Yuzhny Mining and Processing Plant resumes production after downtime

Yuzhny Mining and Processing Integrated Works (YuGOC, Dnipropetrovsk Region) will resume production on November 7 after a slowdown since July 1 this year.
According to the official information of the plant, the operational business plan for the current month will be 173 thousand tons of iron ore concentrate. Commodity products will be sent to steelmakers Kametstal and Zaporizhstal.
At the same time, it is specified that the planned production volume is distributed between the two ore-dressing plants (ROF) of the plant, which will work around the clock. A total of four processing sections will start operating.
The production process also begins in the open pit of Yugokhta, where 398 thousand tons of yellow ore will be extracted and sent for processing. Transportation of raw materials will be performed by railway transport.
Production also starts with a reduced load in the department of railway transport, crushing and transporting complex, slurry systems shop. Personnel of subdivisions will come out of downtime partially, depending on the need. Auxiliary shops will also be operating.
According to the press release, the November 2022 production plan is 13.4% lower than the same period last year. The reason for the decrease in volumes is a number of objective factors. First and foremost, it is the impossibility of shipping commercial goods by sea from Odessa ports. Electricity shortage, which emerged since early October, has also contributed to production decrease.
As previously reported, since July 1, 2022 Yuzhnoye Mining and Processing Plant has been on forced downtime. The stoppage of production was caused by Russia’s military aggression in Ukraine. In particular, due to the blockage of Odessa sea ports, YGOK lost the ability to send commodity products to consumers in Asia and North Africa.
As reported, in 2021, Yuzhny GOK increased the production of iron ore concentrate by 6.1% compared to 2020 – up to 13 million 581.8 thousand tons.
Yuzhny GOK is one of the main producers of iron ore raw materials – concentrate in Ukraine. It is engaged in mining and enrichment of poor ferruginous quartzite to produce iron ore concentrate.
The raw material base of the plant are quartzites from the Skolevatskoe deposit, located in the central part of the Krivoy Rog iron-ore basin.
YGOK at the beginning of the war was controlled by Metinvest Group and Lanebrook Ltd. (formerly the majority shareholder of Evraz Group, withdrew from the group in 2018), which acquired a 50% stake in YGOK from Privat Group (Dnipro) in late 2007.

,