Northern GOK (Mining and Processing Plant)

Northern Mining and Processing Plant (Northern GOK) is among the largest mining and processing companies in Europe. It has a full cycle of raw material preparation. Northern GOK produces 66% Fe concentrate and 62% Fe, 63% Fe and 65% Fe pellets. The company develops large ferruginous quartzite deposits using the open-pit method. Its industrial reserves are estimated at 2.943 billion tons. The company is part of Metinvest Holding.

Location: Kryvyi Rih, Dnipropetrovsk oblast, Ukraine
Shareholders: Metinvest Holding
Markets: Ukraine, China, Poland
Products: Iron ore pellets and concentrate

Production capacity

Iron ore mining 2 open pits, 36,000 thousand tons of crude iron ore
Iron ore beneficiation 2 beneficiation plants, 14,200 thousand tons of iron ore concentrate
Iron ore pelletizing 3 pelletizing plants, 9,000 thousand tons

Staff and wages

Number of employees 6341
Average wage* UAH 223,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

20000150001000050000
2012 14558 kt2012
2013 14879 kt2013
2014 13421 kt2014
2015 13152 kt2015
2016 11637 kt2016
2017 11365 kt2017
2018 10755 kt2018
2019 12010 kt2019
20000150001000050000
2012 9957 kt2012
2013 10832 kt2013
2014 8634 kt2014
2015 7690 kt2015
2016 8882 kt2016
2017 7420 kt2017
2018 8495 kt2018
2019 8010 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
Sales1668.21056.4611.4590.1875.39601101
EBITDA945.1575.7221.3285.5466.9456619
EBITDA margin56.7%54.5%36.2%48.4%53.3%47.53%56.2%
Net income555.2129.9-55.6141.1292.9302309
Net income margin33.3%12.3%-9.1%23.9%33.5%31.46%28.1%
CAPEX120.388.349.940.762.5113156

Key facts

2020

Northern GOK is to invest ₴3.1 billion in equipment modernization and overhauls, as well as in the construction of strategic facilities, including the replacement and commissioning of three electrostatic precipitators of the pelletizing machine. This will help the plant reduce dust emissions into the air by 500 tons per annum.

2019

Northern GOK updated its fleet of dust control water sprinklers. 10 units of equipment with a total value of ₴300 million were put into operation.

Northern GOK invested around ₴63 million in the reconstruction of the 24th technological section of the first beneficiation plant. During the reconstruction, it is planned to replace most equipment, including iron ore supply belts, the classifier, deslimers, main components of mills and separators. The overhaul of the section will essentially simplify equipment maintenance.

In 2019, Northern GOK plans to invest UAH 1.7 billion into overhaul of vehicles and equipment.

In 2019, Northern GOK to invest UAH 500 million into the buying of 16 new  dump trucks.

In 2018

Northern GOK invested UAH 2.5 billion to renovate equipment and enhance efficiency and environmental friendliness. The company bought 11 dump trucks and 2 heavy bulldozers, re-equipped 4 irrigation machines, and overhauled railway transport.

In 2017

Metinvest Holding (Central GOK, Northern GOK, Ingulets GOK) announced its plans to buy 50 BELAZ dump trucks by the end of 2020, as part of the machinery renewal program.

2017

Northern GOK launched production of 65% Fe pellets. In 2017, it produced 1.5 million tons of such pellets type.

In 2016

Northern GOK launched the first line of the complex of cyclic-flow technology (the system of conveyors, through which iron ore is delivered from an open pit to a crushing plant for the production of iron ore concentrate) at Pervomaysk open pit. The construction began back in 2010. According to the media, investments in the project amounted to UAH 1.9 billion.

Sources: websites of the companies, media outlets