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 4,583
Average wage* UAH 187,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

70006000500040003000200010000
2012 6389 kt2012
2013 6383 kt2013
2014 6411 kt2014
2015 6154 kt2015
2016 5224 kt2016
2017 4726 kt2017
2018 4406 kt2018
300025002000150010005000
2012 2313 kt2012
2013 2237 kt2013
2014 2256 kt2014
2015 2305 kt2015
2016 2303 kt2016
2017 2250 kt2017
2018 2248 kt2018

Indicative sales structure by products in 2018

Indicative sales structure by markets in 2018

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales709.1527.1299.6277.4403.3417
EBITDA332.2263.279.2124.8168.6139
EBITDA margin46.8%49.9%26.4%45.0%41.8%33.39%
Net income196.564.831.686.6101.883
Net income margin27.7%12.3%10.5%31.2%25.2%19.87%
CAPEX 55.5 7.2 12.2 36.2 41.995

Key facts

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.

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 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.

Sources: websites of the companies, media outlets