The Ukrainian flat steel producer Mariupol Ilyich Iron and Steel Works, a part of the steel and rolled products division of the Ukrainian mining and steel producing group Metinvest, has estimated that the completion of the construction of its PCI facility for blast furnaces will require a further $100 million plus or minus 30%.
In November 2008, due to the financial crisis, which resulted in production cuts and a sharp decrease in the company revenues, Ilyich suspended the installation of its PCI facility, supplied by China National Mineral Co Ltd in line with the contract concluded on May 18, 2006. At that time, Ilyich had invested about UAH 412 million in the project, the resumption of which once again became relevant following Ilyich merger with Metinvest in 2010, and also considering the possibility of reducing natural gas consumption and of replacing up to 50% of coke, used in blast furnace production by coal which is cheaper.
The construction of the PCI facility is expected to be completed within 18 months. According to calculations, the payback period of the project is up to 40 months including the construction periods. (SteelOrbis)
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