Central GOK (Mining and Processing Plant)

Central Mining and Processing Plant (Central GOK) produces 67.5% and 68.2% Fe concentrate and 65% Fe pellets. The company has three open pits and a mine, i.e. uses both open-pit and underground mining methods. It exports almost all of its production volumes. Central GOK’s total reserves of magnetite quartzite are estimated at 463 million tons of. Central GOK is a part of Metinvest Holding.

Location: Kryvyi Rih, Dnipropetrovsk oblast, Ukraine

Shareholders: Metinvest Holding

Markets: Poland, Romania, Serbia

Products: Iron ore pellets and concentrate

Production capacity

Iron ore mining 15,400 thousand tons

Iron ore beneficiation 6,000 thousand tons

Iron ore pelletizing 2,000 thousand tons

Staff and wages

Number of employees 4498

Average wage* UAH 260,000 per annum

_{* per worker before taxes}

Charts and tables

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2012

2013

2014

2015

2016

2017

2018

2019

2020

300025002000150010005000

2012

2013

2014

2015

2016

2017

2018

2019

2020

Indicative sales structure by products in 2020*

Indicative sales structure by markets in 2020*

_{* structure of sales volumes, metric tons}

Financial performance, $ million

	2013	2014	2015	2016	2017	2018	2019	2020
Sales	709.1	527.1	299.6	277.4	403.3	417	467	461
EBITDA	332.2	263.2	79.2	124.8	168.6	139	98	186
EBITDA margin	46.8%	49.9%	26.4%	45.0%	41.8%	33.39%	21.0%	40.2%
Net income	196.5	64.8	31.6	86.6	101.8	83	57	59
Net income margin	27.7%	12.3%	10.5%	31.2%	25.2%	19.87%	12.2%	12.9%
CAPEX	55.5	7.2	12.2	36.2	41.9	95	120	67

Key facts

In 2017

Central GOK completed reconstruction of the iron-ore pelletizing plant, that enabled the company to launch production of premium pellets of uniform size and increased strength. This type of products has higher marginality, and offers the opportunity to expand markets and effectively compete with leading market players.

In 2018

Central GOK expanded its markets — the company delivered a trial batch of 40 thousand tons of iron ore pellets to UK’s Tata Steel plant.)

In 2019

Central GOK implemented 12 frequency converters from the Swiss ABB company, which automatically regulate the operation of electric pumping units. Economic effect amounted about UAH 5.5 mln per year.

2020

Central GOK has invested over ₴106 million in modernization of three excavators at Gleevatskyi and Artemivskyi quarries.

Central GOK completed a project to upgrade the beneficiation plant. This will make it possible for the plant to further beneficiate conventional concentrate to get a 70.5% Fe product. This product is needed for production of DRI pellets.

Central GOK was the first in Ukraine to equip the iron ore beneficiation plant with KDF-90 ceramic filters. Investment is estimated at $5 million. The installation of new vacuum filters is part of the company’s large-scale project for DRI pellet production.

2020

Central GOK launched production of Fe70.5% iron ore concentrate

Central GOK invested over $11 million in upgrading of mining equipment

Data source for sections “Production results”, “Sales structure”, “Financial performance”: GMK Center calculations, based on companies`annual reports and web-sites data, media sources