Southern GOK (Mining and Processing Plant)

Southern Mining and Processing Plant (Southerm GOK) produces iron ore concentrate and sinter. Iron ore is mined by the open-pit method at Skelevatske magnetite deposit (reserves of magnetite quartzite — 962.2 million tons, reserves of oxidized quartzite — 53.6 million tons).

The company supplies sinter to the Ukrainian market only. Nearly 50% of iron ore concentrate is exported to China.

Southern GOK is under the joint control of Metinvest Holding and the Evraz Group

Location: Kryvyi Rih, Dnipropetrovsk oblast, Ukraine
Shareholders: Metinvest Holding, the Evraz Group
Markets: China, Ukraine, Poland
Products: Sinter and iron ore concentrate

Production capacity

Iron ore mining 26 million tons
Iron ore beneficiation 12 million tons
Production of sinter iron ore 2 million tons

Staff and wages

Number of employees 6394 (2018)
Average wage* UAH 177,000 per annum (2018)

* per worker before taxes

Charts and tables

Production results, thousand tons

20000150001000050000
2012 10386 kt2012
2013 10383 kt2013
2014 10952 kt2014
2015 11389 kt2015
2016 11282 kt2016
2017 12270 kt2017
2018 12313 kt2018
2019 12343 kt2019
300025002000150010005000
2012 2023 kt2012
2013 2414 kt2013
2014 2074 kt2014
2015 1616 kt2015
2016 2085 kt2016
2017 1859 kt2017
2018 1700 kt2018
2019 946 kt2019

Indicative sales structure by products in 2019*

Indicative sales structure by markets in 2019*

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales1150827485571750.6778
EBITDA614н/д248314430.9352
EBITDA margin53.3%н/д51.2%55.1%57.4%45.2%
Net income413569160231338.0262
Net income margin35.9%68.9%33.0%40.4%45.0%33.7%
CAPEX7048254128.191

Key facts

2019

In October 2019, Southern GOK suspended production of sinter.

Southern GOK spent ₴400 million for the overhaul of the technological section No. 13 at the second beneficiation plant. Until 2022, it is planned to upgrade all technological sections at two ore beneficiation plants.

In 2018

Two technological sections of the beneficiation plant No. 1 of Southern GOK were overhauled. Over UAH 680 million were invested in the upgrade of equipment and the replacement of construction facilities.

In 2018

Southern GOK invested UAH 63 million in renovation of mining equipment. The company bought two BELAZ large dump trucks with the loading capacity of 130 tons.

In 2017

Two sections of the beneficiation plant No. 1 were overhauled. The cost of works was around UAH 400 million. The equipment at all technological sections was almost completely replaced, including grinding, separating, and filtration devices; more powerful pumps were installed.

Sources: websites of the companies, media outlets