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 4,627
Average wage* UAH 193,000 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

Indicative sales structure by products in 2019*

Indicative sales structure by markets in 2019*

* structure of sales volumes, metric tons

Financial performance, $ million

 201320142015201620172018
Sales298221104106148129
EBITDA14813031347439
EBITDA margin49.5%58.7%29.9%31.9%49.6%29.85%
Net income80951117482
Net income margin26.8%42.9%10.2%15.9%32.6%1.88%
CAPEX342924252429

Key facts

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.

2018

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

Since 2018

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

Sources: websites of the companies, media outlets