Yuzhny Mining and Processing Works (UGOK) plans to increase its investments into development of the capacities to 922 million UAH in 2015, up by 32% YoY.
According to the company CEO Konstantin Fedin, investments began to grow after the coming of the new investors in 2010. In 2010 the works produced 19.6 million tons of raw iron ore, now it produces 24.5 million. Iron ore concentrate output target for 2015 is 11.2 million tons.
In 2010 investments totaled 321 million UAH, in 2014 – over 700 million.
At the same time, Konstantin Fedin noted that the works was working on the edge of profitability.
Prime cost of 1 ton of concentrate is $20-24, logistics – $27-30 per ton. Iron concentrate in Chinese ports is sold at $56 per ton.
UGOK exports 80-90% of its iron ore concentrate, sinter is sold on the local market. (Ukrainian metal)