Zaporizhzhia Iron Ore Plant — Information about Ukrainian iron and steel producers

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

Sinter iron ore

5000450040003500300025002000150010005000

2012

2013

2014

2015

2016

2017

2018

2019

2020

Indicative sales structure by products in 2020*

Indicative sales structure by markets in 2020*

_{* structure of sales volumes, metric tons}

Financial performance, $ million

	2013	2014	2015	2016	2017	2018	2019	2020
Sales	298	221	104	106	148	129	233	242
EBITDA	148	130	31	34	74	39	87	117
EBITDA margin	49.5%	58.7%	29.9%	31.9%	49.6%	29.85%	37.5%	48.3%
Net income	80	95	11	17	48	2	52	76
Net income margin	26.8%	42.9%	10.2%	15.9%	32.6%	1.88%	22.5%	31.4%
CAPEX	34	29	24	25	24	29	23	44

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