In Q1 2021, Valki Ilmenite and Mizhrichensk MCCs produced 31,000 t of ilmenite

Two mining and concentration complexes, owned by Valki Ilmenite LLC and Mizhrichensk LLC, respectively, both members of Group DF titanium business, produced 31,000 t of ilmenite concentrate (TiO2).

“Output plans have been implemented in full, all product were supplied in accordance with the contracts signed. Decline of production was triggered by changing market demand for titanium products. This was not a reason to curtail the large-scale capital investment program launched at the plants. In 2021, the shareholder has already invested more than UAH 31 million in two MCCs. We continue the planned renewal of fixed assets: new mining equipment and transport machines are being purchased, old assets are being upgraded, repaired and renewed. Our strategy is aimed at increasing production efficiency, improving cost indicators and increasing the margin profitability of the business in general”, commented Serhii Kosenko, Chairman of the Board, Valki-Ilmenit LLC and “Mizhrichenskiy MCC” LLC.

In Q1 2021, the average salary at Valki-Ilmenit LLC and “Mizhrichensky MCC” LLC increased by 13.5% and reached UAH 14,600. The amount of taxes and levies paid to the budgets at different levels increased by 10.4% and reached UAH 27.7 million.

 

MCCs will increase output in proportion to demand.

“According to optimistic scenario, our analysts expect the demand for titanium products to recover to pre-crisis levels starting from mid-2022 only. At a time of significant decline in the global markets, our task is to get ready for future growth. That is why, we are actively upgrading the equipment and have started carrying out mining and preparatory work for the transition to new mining sites,” said Serhii Kosenko.

As part of Group DF titanium business development strategy, the shareholder continues to invest in the construction of two more new mining and processing plants, i.e. Stremigorodsky MPP (Zhytomyr region) and Motronovsky MPP (Dnipropetrovsk region).

 

About USD150 million has already been invested in the Motronovsky MCC construction project. The designed capacity of the company is planned at 120,000 t of ilmenite concentrate, 14,000 t of zirconium and 20,000 t of rutile concentrate.

 

Investments in Stremigorodsky MCC project have already exceeded UAH 100 million. At the moment, design and survey work is being carried out. Following the implementation of the first stage of the project, the installed capacity of the plant will reach approx. 500,000 t of ilmenite concentrate and 150,000 – 200,000 t of apatite concentrate per year.

 

In Q1 2020, Valki-Ilmenit LLC and Mizhrichensky MCC LLC produced 35,200 t of ilmenite concentrate.