Due to the railroad transportation and electricity tariffs increase expenses of the Pobuzhye Ferronickel Plant will reach 130 million UAH in 2016 affecting the prime cost.
“Railroad tariffs went up by 15%, electricity tariffs are growing all the time. That’s a gigantic weight on our shoulders. And we still have to meet a certain prime cost”, said the company CEO Oleg Bespalov.
Nickel prices at LME have reached $9200 per ton, which is the prime cost at the company.
“In winter quotations dropped to $7 thousand. I feared our investor wouldn’t be interested in doing business in Ukraine”, he added.
In spring electricity price increased by 18-20%. PFK additional expenses from railroad tariff increase will reach 25-30 million UAH, while those from electricity will grow to 100 million UAH. (Ukrainian metal)