Group DF mining companies significantly reduce ilmenite production
In the first quarter of 2021, two mining plants Valki-Ilmenit LLC and Mezhdurechensky GOK LLC, which are part of the Group DF titanium business, produced 31 thousand tons of ilmenite concentrate (TiO2).
“Production plans are fully implemented, all deliveries of products were carried out in accordance with the concluded contracts. The decrease in production volumes was due to changes in the market environment - a global decline in demand for titanium products. This did not become a reason for curtailing the large-scale capital investment program launched at the mills. In 2021, the shareholder has already invested over UAH 31 million in two mining and processing plants. We continue the planned renewal of fixed assets: new mining and transport equipment is being purchased, modernization, repairs and renewal of old assets are being carried out. Our strategy is aimed at increasing production efficiency, improving cost indicators and increasing business margins as a whole, ”commented Sergey Kosenko, Chairman of the Valki-Ilmenit and Mezhdurechensky GOK Companies.
In the first quarter of 2021, the average salary at Valki-Ilmenit LLC and Mezhdurechensky GOK LLC increased by 13.5% and amounted to UAH 14.6 thousand. The amount of taxes and fees paid to the budgets of different levels increased by 10.4% and amounted to UAH 27.7 million.
GOKs will increase production in proportion to demand.
“Our analysts expect a recovery in demand for titanium products at pre-crisis levels only from mid-2022. This is an optimistic scenario. At a time when the global market is undergoing significant drawdown, our task is to prepare for future growth. Therefore, we are actively updating our equipment and have begun mining and preparatory work to move to new production areas, ”stressed Sergei Kosenko.
As part of the Group DF titanium business development strategy, the shareholder continues to invest in the construction of two more new GOKs - Stremigorodsky GOK (Zhytomyr region) and Motronovsky GOK (Dnepropetrovsk region).
About $ 150 million has already been invested in the Motronovsky GOK project. The planned design capacity of the enterprise is estimated at 120 thousand tons of ilmenite concentrate, 14 thousand tons of zirconium and 20 thousand tons of rutile concentrate.
Investments in the Stremigorodsky GOK project exceeded UAH 100 million. At the moment, design and survey work is being carried out. After the implementation of the first stage of the project, the design capacity of the plant will be about 500 thousand tons /year of ilmenite concentrate and 150-200 thousand tons /year of apatite concentrate.
In the first quarter of 2020, two mining plants Valki-Ilmenit LLC and Mezhdurechensky GOK LLC produced 35.2 thousand tons of ilmenite concentrate.