During 10 months of last year, the enterprise was forced to stand still
Mezhyrichensky Mining and Processing Plant (Mezhyrichensky Mining), a part of Group DF’s titanium business, reduced production of ilmenite concentrate by 78.8% in 2023 – to 22.1 thousand tons compared to 2022. This was reported to GMK Center by the company’s press service.
Ilmenite ore production last year amounted to 307 thousand cubic meters, down 82.9% compared to 2022.
The significant drop in production at Mezhyrichensky Mining last year was due to a 10-month downtime caused by the decision of the State Service of Geology and Subsoil of Ukraine to suspend special permits for subsoil use for all Group DF’s mining and processing plants (Mezhyrichensky Mining, Valky Ilmenite, Motronivsky Mining).
The relevant decision of the State Service of Geology and Mineral Resources was made on March 27, 2023, citing the new subsoil use law. The plant resumed operations in early November 2023, as the court ruled that the suspension of the licenses by the State Service of Geology and Mineral Resources was unlawful.
«Group DF’s titanium business has had a dramatic year. After 7 months of litigation, we received a positive decision in the second instance court on Mezhyrichensky Mining. This allowed us to resume operations, return people to work, pay salaries in full and increase tax payments,» comments Dmytro Golik, Director of Mezhyrichensky Mining.
According to him, due to the forced shutdown, production and sales volumes dropped significantly, which led to a reduction in the payroll by about 40% and the transfer of people to idle time.
«In November, we restarted the plant and brought people back to work, but the litigation is ongoing. If we lose in the third instance court (the Supreme Court of Ukraine), we will be forced to shut down the plant again, which will lead to the dismissal of hundreds of our employees,» added the plant’s director.
As a result of the prolonged downtime, Mezhyrichensky Mining and Valky-Ilmenit paid UAH 84.2 million in taxes and fees to the budgets of various levels, while in 2022 this figure was UAH 185.4 million.
«Due to the suspension of the license, the budgets of all levels have not received more than UAH 100 million,» Golik summarized.
As GMK Center reported earlier, Group DF’s mining plants, Valky Ilmenite and Mezhyrichensky Mining, reduced production of ilmenite concentrate by 27% in 2022 compared to 2021, to 103.6 thousand tons.
Group DF owns two operating Minings – Valky-Ilmenit and Mezhyrichensky Mining, as well as two plants under construction: Stremyhorodskyi and Motronivsky. The maximum design capacity of Mezhyrichensky Mining is 180,000 tons of ilmenite concentrate per year, and Valky-Ilmenite – is 65,000 tons.