Marganets GOK (Mining and Processing Plant)

Marganets Mining and Processing Plant (Marganets GOK) mines manganese ore by open-pit and underground methods (80% to 20%). Its raw material base is represented by the eastern section of Nikopol deposit (253 million tons of reserves).

Manganese concentrate produced by Marganets GOK is sold in the Ukrainian market. Its main buyers are Nikopol and Zaporizhzhia ferroalloy plants.

Location: Marganets, Dnipropetrovsk oblast, Ukraine
Shareholders: The Privat Group
Markets: Ukraine
Products: Manganese concentrate

Production capacity

Manganese ore mining 5 mines, including 1 mine under construction, and 2 open pits (Basanskyi and Grushevskyi), 7,000 thousand tons
Manganese ore beneficiation Grushevska Benefication Plant, 2,430 thousand tons

Staff and wages

Number of employees 3,915
Average wage* UAH 112,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

7006005004003002001000
2012 696 kt2012
2013 441 kt2013
2014 648 kt2014
2015 584 kt2015
2016 512 kt2016
2017 545 kt2017
2018 582 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
Sales51438526138114
EBITDA-1763-294312
EBITDA margin -32.1% 14.9% 3.5%- 31.0%10.81%
Net income-2700-34306
Net income margin -51.7% 1.1% 0.4%- 22.1%5.24%
CAPEX423238

Key facts

In November 2016

Marganets GOK extended the special license for the subsoil use until August 2036.

In 2018

A project for the construction of a manganese ore sludge processing shop was launched. The amount of investment is estimated at $16.5 million.

Sources: websites of the companies, media outlets