Black Iron has leased 248 hectares of land in Kryvyi Rih for development of a deposit

Canadian mining company Black Iron Inc. with assets in Ukraine has entered into a multi-year agreement with the city of Kryvyi Rih to lease 248 hectares of land. This territory is critical for the implementation of the Shymanivske iron ore deposit development project. This is stated in a press release by Black Iron.

The leased land covers a significant portion of the future open pit and extends to the west, approaching state land used by the Ministry of Defense. Black Iron is considering leasing or owning this land to build a processing plant, tailings dams and waste rock dumps.

According to the company, this agreement is an important step in the process of renewing the Special Permit No. 4537 for mining. It will also enable the completion of environmental and engineering studies necessary for the further development of the project.

As a reminder, Black Iron Inc. acquired the rights to the Shymanivske deposit in 2010, but subsequently faced a number of problems during its implementation. In 2013, the largest Ukrainian mining and metallurgical group Metinvest acquired a 49% stake in the project for $20 million, but later withdrew from the cooperation.

The expected capital investment in the launch of the first stage of the project is $452 million, and the second stage – $364 million. The Shymanivske deposit has the potential to become an important source of iron ore, especially given its close proximity to large mining and metallurgical enterprises, including ArcelorMittal Kryvyi Rih.

The open pit is planned to measure 660 m by 390 m with a depth of up to 80 m. Annual production is expected to reach 4.5 million tons of ore. The total volume of stripping operations will be 5.13 million cubic meters, of which 1.31 million cubic meters will be ore.