ArcelorMittal Kryvyi Rih’s Kryvyi Rih Iron and Steel Works (AMKR, Dnipro region) is gradually increasing production by commissioning idle units and overcoming the consequences of Russian aggression.
“We used to operate at 25% of capacity, but now we are gradually increasing production every day. This, in turn, will lead to an increase in jobs and taxes for our city and the Ukrainian economy,” the press service said on Friday.
It is specified that coke oven batteries No. 3-4 are scheduled to be launched from April 21 to 24 inclusive, which will provide raw materials for the increase in blast furnace production.
“We would like to draw the attention of Kryvyi Rih residents to the fact that during the launch of coke oven batteries, there may be a noticeable emission of smoke. We would like to inform you that the smoke is caused by the technological process of the launch, the situation is safe for the residents of the city,” explains AMKR.
As reported earlier, ArcelorMittal Kryvyi Rih increased steel production by 93% in January-March 2024 to 278 thousand tons compared to the same period in 2023. The company produced 245 thousand tons of blast furnace coke compared to 211 thousand tons (up 16%), 403 thousand tons of pig iron compared to 392 thousand tons (up 3%), 278 thousand tons of steel compared to 250 thousand tons (up 11%), and 262 thousand tons of rolled products compared to 230 thousand tons (up 14%).
Production growth compared to the first quarter of 2023 ranged from 50% to 94%, depending on the type of product.
The first quarter of 2024 also reflects gradual progress in the restoration of the plant’s production capacity.
“We plan to continue our production development program, in particular, to approach 50% of our steelmaking capacity in the near future. At the same time, the stability of energy supply remains a significant factor in the successful implementation of our plans,” said Mauro Longobardo, CEO of AMKR, earlier.
“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.
In January-March this year, ArcelorMittal Kryvyi Rih Iron and Steel Works (AMKR, Dnipro region) increased steel production by 93% year-on-year to 278 thousand tons.
According to the company, compared to the fourth quarter of last year, iron ore concentrate production amounted to 1.775 million tons versus 1.283 million tons (38% more).
Blast furnace coke production in January-March 2023 amounted to 245 thousand tons compared to 211 thousand tons (up 16%), pig iron – 403 thousand tons compared to 392 thousand tons (up 3%), steel – 278 thousand tons compared to 250 thousand tons (up 11%), rolled products – 262 thousand tons compared to 230 thousand tons (up 14%). Production growth compared to the first quarter of 2023 ranged from 50% to 94%, depending on the type of product.
In March 2024, compared to March 2023, production of iron ore concentrate increased by 52% (from 427 thousand tons to 651 thousand tons), blast furnace coke by 50% (from 56 thousand tons to 84 thousand tons), pig iron by 27% (from 109 thousand tons to 138 thousand tons), steel by 61% (from 77 thousand tons to 124 thousand tons) and rolled products by 57% (from 74 thousand tons to 116 thousand tons). Production volumes also grew year-on-year, with iron ore concentrate up 14%, blast furnace coke up 9%, pig iron up 19%, and steel and rolled products up 61% and 59%, respectively.
These results were achieved despite Russian attacks against energy infrastructure and the resulting power outages, the press release said.
The first quarter of 2024 also reflects gradual progress in restoring the company’s production capacity.
“We plan to continue our production development program, in particular, to approach 50% utilization of our steelmaking capacity in the near future. At the same time, the stability of energy supply remains a significant factor in the successful implementation of our plans,” said Mauro Longobardo, CEO of AMKR.
“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.
Mittal Steel Corporation acquired a 93.02% stake in Kryvorizhstal in an open tender on October 24, 2005 for UAH 24.2 billion at a starting price of UAH 10 billion, after which the plant was renamed Mittal Steel Kryvyi Rih and later ArcelorMittal Kryvyi Rih.
ArcelorMittal Kryvyi Rih’s Kryvyi Rih Mining and Metallurgical Plant (AMKR, Dnipro region) has completed an extended overhaul of blast furnace No. 6, which lasted 296 days and took place in difficult military conditions.
According to the company, the overhaul will increase the reliability of the furnace equipment, reduce operating costs, save energy, and help reduce the industrial environmental footprint.
The furnace has been repaired and is awaiting an order to put it into operation. The relevant documents are currently being processed. This is the first time that the sixth blast furnace has been repaired in the second category since 2015, when this metallurgical unit was reconstructed and environmental protection measures were implemented. In the period from 2015 to 2023, the blast furnace underwent only a few third-category repairs due to the replacement of the backfill apparatus and minor maintenance work.
It is specified that the main stages of this repair were the removal of residual charge materials and spent refractory lining, replacement of the charging apparatus, design lining of the blast furnace shaft, which used about 980 tons of refractory bricks, restoration of the furnace, and replacement of the cooling plates of the furnace shaft cooling system. More than half of the refrigeration plates – 364 pieces – have been renewed; these plates, as well as most of the other spare parts, were manufactured by LMZ specialists. The furnace shaft was lined by the specialists of Steel Service PE. Repair work was also carried out by contractors and repair departments of our enterprise.
“Restoration work was also carried out on the blast furnace hearth. The hearth is the lower part of the blast furnace where the smelting products – liquid iron and slag – are accumulated and where the devices for their release are located. When the blast furnace is in operation, the horn is exposed to high temperatures and considerable pressure, so it is important that it can withstand a heavy load – it must be strong and stable. During the repair, it was reliably restored with imported refractory materials,” explains Sergey Losyuk, Deputy Head of BF No. 1 for Mechanical Equipment.
In addition, BF No. 6 repaired the hydraulic equipment in the casting yard, the charge feeding system, and the blast furnace top. At the same time, the first category of air heater No. 2 was repaired. This will allow the blast furnace to maintain the required thermal conditions with maximum coke savings during operation.
A significant amount of work was done to repair the electrical equipment and automation of BF-6. The blast furnace’s aspiration units have been repaired to capture harmful emissions and help improve the environment.
“Military conditions affected the progress of the work. We had to solve logistical issues of delivering new materials and equipment. As for air raid alerts, we have all learned to work as safely as possible under the sirens. Nevertheless, we have accomplished everything we planned,” said Vladislav Polishchuk, head of DC No. 1.
Earlier, Mauro Longobardo, the company’s CEO, announced his intention to launch another blast furnace in April, and the plant will operate two blast furnaces, at about 50% of its pre-war capacity.
“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.
ArcelorMittal Kryvyi Rih’s Kryvyi Rih Mining and Metallurgical Plant (AMKR, Dnipro region) has received a conclusion from the Ministry of Environmental Protection and Natural Resources of Ukraine on the environmental impact assessment of the construction of a tailings dump – Map III – a special hydraulic structure used to dispose of enrichment waste.
“PJSC ArcelorMittal Kryvyi Rih informs that the Ministry of Environmental Protection and Natural Resources of Ukraine has issued a conclusion on the environmental impact assessment of the planned activity “Construction of the tailings dump “III map” sludge management of the ore processing plant in the Dnipropetrovs’k region of AMKR No. 21/01-202361210773/1 dated February 27, 2024 and the Report on public discussion No. 21/01-202361210773/2 dated February 27, 2024″, – according to the company’s information published by the Department of Ecology on the website of the Kryvyi Rih City Executive Committee on Thursday.
It is specified that the information on the company’s receipt of the environmental impact assessment conclusion is published in the Unified Register of Environmental Impact Assessment.
As reported, ArcelorMittal Kryvyi Rih has several times sent documents to the Ministry of Environment to approve the construction of a tailing dump for waste “III map”. In mid-2023, AMKR again sent documents to the Ministry of Environmental Protection and Natural Resources of Ukraine to approve the construction of the tailing dump.
According to the documentation available to Interfax-Ukraine, the planned activity is the new construction of the Karta III tailings dump in the sludge management facility of the ore processing plant on the territory of the Grechanopodivska and Novolativska village councils in the Shyrokivskyi district of Dnipropetrovska oblast.
Earlier it was explained that the procedure for assessing the planned activity is carried out within the framework of expansion and changes, including revision or updating of the conditions for carrying out the planned activity established by the decision to carry out the planned activity or extend the terms of its implementation (…).
Information on the intention of the AMCS to obtain an environmental impact assessment (EIA) was published by the Ministry of Ecology and Natural Resources on June 15, 2023.
Earlier it was reported that PJSC ArcelorMittal Kryvyi Rih intends to build the Map III tailing dump. The construction of the tailings storage facility is necessary “due to the fact that the existing tailings storage facilities have reached the limits of economic feasibility of their expansion”.
At the same time, it was specified that the company’s crude ore output for 2021-2025 is 24.4269 million tons per year, with an annual tailings output of 14.964 million cubic meters per year. The design elevation of the enclosure dam is 100 meters. The total capacity of the tailing dump is 34.8 million cubic meters, with a usable capacity of 29.4 million cubic meters. The area of the tailing pit is 382.95 hectares. The total length of the containment dams is 5,950 meters and their maximum height is 12 meters. The area of the construction site is 521.1245 hectares.
Thus, in line with the requirements of the Ministry of Ecology, AMKR has to enter the environmental impact assessment procedure for the fourth time.
“ArcelorMittal Kryvyi Rih currently operates three tailing dumps, two of which – Myroliubivka and United. The company planned to invest about $50 million in 2020-2024. The company has already invested more than $15 million in the third tailing dump, Central, having completed construction in 2017 to the level of +90 meters (now +95 meters). AMKR will spend the same amount to expand it to +115 meters (these works are planned for the next seven years).
“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.
ArcelorMittal Kryvyi Rih Iron and Steel Works of Kryvyi Rih (AMKR, Dnipro region) intends to increase capacity utilization from 30% to 50% in 2024.
“In 2024, we plan to increase production and increase production capacity by operating two blast furnaces. Thus, the utilization of our production facilities will increase from 30 to 50 percent,” said Mauro Longobardo, CEO of AMKR, receiving a delegation from the German Embassy led by Ambassador Martin Eger at the plant.
The visit program included discussions with the plant’s management on the current state of the enterprise and its development prospects, as well as a visit to blast furnace production.
According to Longobardo, the plant is ready to increase production as soon as possible and support Ukraine in its post-war recovery. To this end, the company has retained its staff, avoided layoffs, and all production equipment is in working order despite power outages and even rocket attacks.
“We are also steadily pursuing the path of transformation into a company that consistently reduces its environmental impact. Several steps in this direction have already been taken, such as the closure of outdated facilities: coke oven batteries No. 1-2, a sinter plant for metallurgical production, as well as the commissioning of such modern production facilities as coke oven batteries No. 5-6,” the CEO said, as quoted by the press service.
In turn, Yeher, discussing Ukraine’s postwar recovery, noted that “when the time comes for postwar reconstruction, it is important not to return the facility to its prewar state but to bring it to a modern level.”
“We have to rebuild the best. Especially since Ukraine will be a member of the European Union. I am confident that all this can be achieved, and ArcelorMittal will play an important and demonstrative role in this process,” the German ambassador summarized.
“ArcelorMittal Kryvyi Rih is the largest rolled steel producer in Ukraine. It specializes in long products, including rebar and wire rod.
ArcelorMittal owns the largest mining and metallurgical plant in Ukraine, ArcelorMittal Kryvyi Rih, and a number of small companies, including ArcelorMittal Berislav.
Mittal Steel Corporation acquired a 93.02% stake in Kryvorizhstal in an open tender on October 24, 2005 for UAH 24.2 billion at a starting price of UAH 10 billion, after which the plant was renamed Mittal Steel Kryvyi Rih and later ArcelorMittal Kryvyi Rih.
Arcelor Mittal Duisburg GmbH (Germany) owns 95.1283% of AMKR shares.
The authorized capital of the plant is UAH 3 billion 859.533 million.
PJSC ArcelorMittal Krivoy Rog (Dnipropetrovsk Region) ended 2022 with a net loss of UAH 49 billion 9.104 million, while in 2021 it posted a net profit of UAH 25 billion 282.951mn.
According to the official information of the company, the net loss per share reached 12.7 UAH. At that, based on the results of the last year AMKR assets amounted to 52 billion 682.761 million UAH, shareholders’ equity – 28 billion 212.939 million UAH, and long-term liabilities – 6 billion 46.354 million UAH.
Commenting on the results of activities in 2022, Mauro Longobardo, the general director of AMKR, stated that the main conclusion that can be made now is that the enterprise has survived and has not stopped working in spite of the full-scale war.
“The question of survival and resistance to all adverse factors has become the main task of the entire mining and metallurgical industry throughout 2022. Now ArcelorMittal Krivoy Rog continues to fight for survival, having survived last year’s difficulties related to the blockade of major seaports, as well as power outages and even a missile strike. We manage to maintain a satisfactory state of the company’s liquidity, including by attracting credit funds under ArcelorMittal group guarantees,” the top manager noted.
He also added that the support of the parent company, as well as the heroic work of the employees, made it possible to maintain the pulse of production in Kryvyi Rih.
“Now we are concentrating on gradually resuming more and more production processes at the combine and we expect to move to positive EBITDA as early as the second half of this year,” Longobardo said.
According to him, according to international financial reporting standards, in 2022 the company recognized UAH 36 billion of losses from a decrease in the usefulness of its non-current assets as a result of negative changes in the economic environment caused by Russian military aggression. Under the conditions of full-scale war in 2022 the level of AMKR capacity utilization did not exceed 20-25%. In spite of this, the company retained its staff, and all employees receive their salaries on time.
The company does not stop investing even in the extremely difficult wartime conditions. Now those investment projects are being implemented, without implementation of which the production of steel and ore may stop completely. Among such projects is the construction of the new tailing pond “The Third Map”, which is necessary for the continuation of production and safe storage of the production wastes.
It is also reported that in 2022 AMKR invested $181.4 million in production development, of which operating costs amounted to $68.6 million and capital – $112.8 million. During the 17 years of work in Ukraine ArcelorMittal invested $10.6 billion (including $4.8 billion – the amount of purchase at privatization + $5.8 billion – investment in production development).
“ArcelorMittal Krivoy Rog is the largest producer of rolled steel in Ukraine. It specializes in the production of long products, particularly rebars and wire rod.
ArcelorMittal owns in Ukraine the largest mining and metallurgical plant “ArcelorMittal Krivoy Rog” and a number of small companies, in particular PJSC “ArcelorMittal Beryslav”.
