Rudomine continues to develop a project to restore the Dolynsky Mining

Mining company Rudomine, despite the war and a drop in production by 50% from the pre-war level, continues to develop a project to restore the Dolynsky Mining (Dolynsky GOK). This is stated in the press release on the company’s Facebook page.

Through this project, the first meeting of the working group was held regarding the attempt to implement the test section of iron ore enrichment. The event took place in the format of an inspection of the territories of the section’s intended location and a visit to the relevant workshops.

“Our company, as an investor, invests significant efforts in the research and development of iron ore resources, and the iron ore processing project at the Dolynsky GOK is one of the most promising. We plan to introduce new technologies and methods of work in order to achieve the maximum result and ensure the stability of the enterprise’s work for many years to come,” comments the chief engineer of Rudomine Serhii Henkulenko.

According to the deputy director of Dolynsky GOK Oleg Podkovaev, now the company is in the first stage of the active phase.

“Together with the designers, we looked at the sites of GOK where it is possible to place a trial section – a small test line, on which we will try to implement this project. This meeting is a vivid example of the fact that we have not given up on this project. It is not suspended in any way, not on pause, all our actions are based on the initial plans that we announced earlier,” he added.

As GMK Center reported earlier, at the end of 2021, the legal entity Dolynsky GOK LLC, founded by the Rudomine company, became the winner in the auction and acquired part of property of the Ukraine-owned unfinished industrial giant Oxidized Ore Mining and Processing Plant (KGOKOR) in Dolynska Town of Kirovohrad region.

Formerly, Rudomine declared, that KGOKOR intends to allocate an amount similar to the amount of the agreement – 450 million UAH to repay previous debts.

On September 1, 2021, the Ministry of Strategic Industries announced that the resuscitation of KGOKOR requires $100 million of investments.

In accordance with the memorandum signed with the Ministry of Strategic Industries, Rudomain intends to launch the first stage of KGOKOR’s finishing construction by 2023. Proceeding from the said document, the company is an official investor in the finishing construction of Dolinsky MMP and undertakes to invest $100 million in the enterprise and bring it to full capacity by 2025. The design capacity of the iron ore processing plant is supposed to be 12.5 million tons per year, and its finished products production capacity up to 3 million tons per year. In general, the company plans to pay $37 million of taxes and fees to the budget and to allocate over $1 million to the town’s social development. The project provides for the creation of 1.5 thousand jobs.

In April 2022, Rudomine employed 70 workers of KGOKOR, although the aggression of the Russian Federation significantly affected the plans for reconstruction and resumption of production.

The construction of KGOKOR began in 1985 as a joint project of the USSR, Romania, Slovakia and some other countries. In 2007, Romania and Slovakia, the main construction partners, withdrew from the project and requested their investments back. Around $1.5 billion was spent on the project, but over 30 years after the USSR collapse, the enterprise has not been commissioned and its operational readiness remained at the level of 65%.