ArcelorMittal Kriviy Rih, the biggest mining and steelmaking company of Ukraine, summarized the results of its investment program implementation in 2018. Capex and Opex were increased by one third YoY, from $337 to $443.4 million, including $348.8 million of Capex and $94.6 million of Opex.
One of the key 2018 projects was construction of two continuous casting machines amounting to about $144 million: hot tests of one LFCC will be started in February. Reconstruction of light section mill No. 250-4 will be completed this spring – $55 million will be invested in it. This year reconstruction of Sinter Plant No. 2 at the cost of more than $150 million will continue as well. Out of six sinter strands, two have been already modernized: Nos. 5 and 6. Two more will be reconstructed this year, and the updating of Sinter Plant No. 2 is planned to be completed in 2020.
Among the facilities completed in 2018, was a complex of two new coke oven batteries Nos. 5, 6 – it was the largest investment project of the plant for the latest few years. The amount of the investments in the whole complex was almost $160 million. Apart from that, a complex of closed loop cooling of waste BOF gas in the heat-exchanging boilers of three converters (Nos. 4, 5, 6) was commissioned – the costs amounted to 192 million UAH. In addition to that, a new BF gas pipeline of more than one kilometer length was constructed – from BF-9 to gas supply system of the shops (140 million UAH). Also, a modernized compressor No. 13 with 10 MW motor was commissioned at Oxygen Plant (42 million UAH).
As for Mining Department, there was aggressive modernization of Crushing and Ore Dressing Plants in 2018, pumping units were replaced, existing mining transport equipment was restored, new heavy-duty dump trucks were purchased, etc. Mining Department spent $54.5 million just within the frame of capital expenditures. Last year it received four new BelAZ dump trucks of 136 tons capacity, two watering and irrigation machines and a bulldozer – 162.5 million UAH were allocated for their purchase. In 2019-2023 the company intends to invest in the development of Mining Department $270 million.
Ultimately, last year ArcelorMittal Kriviy Rih received 500 new open wagons that allowed the plant to increase its own rolling stock 2.5-fold and partially solve issues that often appeared due to insufficient number of wagons and locos in Ukraine. In particular, issues on timely dispatch of finished products and receiving critically important raw materials for production (although here the opportunities of the plant are limited due to the situation with cargo transportation by railway transport in the country).
Tiwari Vinay, Chief Technology and Environment Officer of PJSC ArcelorMittal Kriviy Rih: “In 2018, we set an absolute record from the moment of privatization – never before have we managed to use such amount of funds for a year. For capital expenditures, only the shops of Steel Plan spent $100 million more than in 2017 – which is 27% higher than the initial business plan. In 2019, we estimate our capital and operational expenditures to exceed $450 million. The total volume of capital investments in the development of production for 2018–2022 will increase from $1.5 to $1.8 billion – ArcelorMittal Group allocated additional financing for that. In 2018 alone, the Corporate Office approved 20 projects for us – it is more than ever. Among them are capital repair of Blast Furnace No. 9, construction of new in-site slag granulation unit for BF-9, new electric air blower at HPP-3, reconstruction of sinter strands Nos. 1 and 4 of the Sinter Plant No.2, construction of tailing pond “Karta 3”, etc.” (AMKR/Ukrainian metal)