Kryvyi Rih Iron Ore Plant

Kryvyi Rih Iron Ore Plant (KZHRK) is the largest producer of 56–64% Fe sinter ore in Ukraine. Most of its production volume is exported to Eastern Europe. KZHRK operates four underground mines at the depth of 1,265–1,465 meters. Its reserves (A+B+C1+C2) amount to 210 million tons of rich iron ores, 58.6% Fe on average. The company is co-managed by Metinvest Holding and the Privat Group.

Location: Kryvyi Rih, Dnipropetrovsk oblast, Ukraine
Shareholders: Metinvest Holding — 50% The Privat Group — 50%
Markets: Ukraine, Czech Republic, Slovakia
Products: Sinter iron ore

Production capacity

Iron ore mining 4 mines, 6,000 thousand tons

Staff and wages

Number of employees 7411
Average wage* UAH 177,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

6000500040003000200010000
2012 5556 kt2012
2013 5718 kt2013
2014 5850 kt2014
2015 5460 kt2015
2016 5000 kt2016
2017 5074 kt2017
2018 4623 kt2018
2019 4397 kt2019

Indicative sales structure by products in 2019*

Indicative sales structure by markets in 2019*

* structure of sales volumes, metric tons

Financial performance, $ million

 2013201420152016201720182019
Sales379.4310.2135.3173.9204.4183254
EBITDA174.3144.562.552.690.14488
EBITDA margin46.0%46.6%46.2%30.3%44.1%24.07%34,9%
Net income117.6105.4 41.9 32.8 70.12775
Net income margin31.0%34.0%31.0%18.8%34.3%14.93%29,5%
CAPEX 6.0 6.1 1.7 1.2 2.633

Key facts

2018

KZHRK plans to produce 4472 ths tons of sinter ore with Fe60.34% average, according to 2018 Annual Report. It means decreasing production volume by 3.2%.

In 2018

A new horizon of 1,425 meters was put into operation at Ternivska mine. Before that, new horizons at the mine were commissioned only in 2004. By the end of 2019, a new horizon of 1,340 meters is expected to be put into operation at Oktyabrska mine.

2019

KZHRK’s 2019 investment program provides for capital investment in the amount of UAH 636 million. This will be a record for the past six years. The 2018 program envisaged investment worth UAH 440 million.

In 2016

Viktor Pinchuk’s companies concluded an amicable agreement with the Privat Group on the ownership of the shares in KZHRK. The agreement was concluded ahead of the start of proceedings in the High Court of London. The point of the conflict was that, according to Pinchuk, although the Privat Group was the nominal owner of KZHRK shares for his benefit, he has not received dividends all this time. The details of the agreement have not been disclosed.

Sources: websites of the companies, media outlets