biz.censor.net.ua

Zaporizhzhia Iron Ore Plant

Zaporizhzhia Iron Ore Plant (ZZHRK) mines iron ore using the underground method at the depth of 301– 1,140 meters. Iron ore is mined at Pivdenno-Bilozerske (reserves – 188.1 million tons) and Pereverzivske (reserves – 393.9 million tons) deposits.

ZZHRK produces sinter iron ore. The company sells 50% of its output in the Ukrainian market. The rest is exported to Europe.

ZZHRK is the only Ukrainian company dealing with filling of voids after mining. The works are performed by a special equipment complex, with the annual capacity of around 1.5 million cubic meters. Crushed stone obtained from the waste rock is used to fill the voids.

Zaporizhzhia Iron Ore Plant belongs to Zaporizhstal and foreign shareholders.

Location: Mala Bilozerka, Zaporizhzhia oblast, Ukraine
Shareholders: Shareholders Zaporizhstal, Minerfin a.s. (Slovakia), KSK Consulting a.s. (Czech Republic)
Markets: Ukraine, Czech Republic, Poland
Products: Sinter iron ore

Production capacity

Iron ore mining 4,500 thousand tons

Staff and wages

Number of employees 4,883
Average wage* UAH 253,000 per annum

* per worker before taxes

Charts and tables

Production results, thousand tons

5000450040003500300025002000150010005000
2012 4500 kt2012
2013 4500 kt2013
2014 4530 kt2014
2015 4700 kt2015
2016 4512 kt2016
2017 4503 kt2017
2018 4552 kt2018
2019 4563 kt2019
2020 4564 kt2020

Indicative sales structure by products in 2020*

Indicative sales structure by markets in 2020*

* structure of sales volumes, metric tons

Financial performance, $ million

 20132014201520162017201820192020
Sales298221104106148129233242
EBITDA1481303134743987117
EBITDA margin49.5%58.7%29.9%31.9%49.6%29.85%37.5%48.3%
Net income809511174825276
Net income margin26.8%42.9%10.2%15.9%32.6%1.88%22.5%31.4%
CAPEX3429242524292344

Key facts

2018

Several self-propelled vehicles were put into operation, in particular Sandvik DD 310-40 drilling rig and Spraymec SF 050VC wet shotcrete complex.

The company uses non-TNT explosives in all types of mining operations. As a result, emulsion explosives account for 70%.

2019

Zaporizhzhia Iron Ore Plant bought a multi-purpose mining machine, PAUS KRF40D. The machine is designed for clearing railway tracks and welding during maintenance of mine machinery and tracks. This is the plant’s first machinery of this kind.

ZZHRK is going to commence development of new deposits of iron ore at the depth of 1,040 meters.

The company will continue to expand its mining equipment stock: it is going to buy self-propelled drilling rigs and auxiliary vehicles for explosives.

2020

ZZHRK invested UAH 4 million in updating the aspiration system on the fine crushing body. The project involves replacing the wet dust suppression system with a filter cartridge. The successful results of the new system will allow this technology to be used at all sources of dust emissions in the enterprise.

2021

ZZHRK has started the construction of ventilation shaft No. 2, which will allow the commencement of operation of the Pereverzevskoye iron ore deposit with reserves of 350 million tons and an expected annual production of 1.5 million tons.

Sources: websites of the companies, media outlets