Metinvest invests $58 mln to support production at mining and processing plants in 2023

MOSCOW. May 15 (Interfax) - The Metinvest group overall invested UAH 2.3 billion, around $58 million at the current exchange rate, in the Central, Inguletsky and Northern mining and processing plants (GOK) in 2023 as part of implementing projects to support capacity and ensure the stability of the production processes, Ukrainian media reported, citing the company's press release.

Metinvest said that it invested funds in projects to improve productivity and product quality, ensure operations of key equipment, and reduce costs to produce iron ore raw materials.

"Metinvest's current investment strategy is focused on maintaining the performance of its assets," according to the press release.

Modernizing sections and installing a new, economical engine in the 2TE10M diesel locomotive that transports ore, as well as installing roller screens for raw pellets on a roasting machine were specifically among the projects implemented last year at Northern GOK.

Pumping equipment was replaced at Central GOK in order to reduce energy costs at the facilities of the slurry pumping installation and technical power supply workshops, respectively.

The main amount of capital investments at Inguletsky GOK was aimed at projects to support production capacity, including reconstructing the tailings/slurry dump. Reconstructing railway tracks at the horizons of the quarry, as well as extending the railway dead-ends/spurs of the quarry and dump were other major projects for the year.

As noted, a significant part of the investments in the mining and processing enterprises was aimed at overhauling machinery and equipment.

Metinvest is a vertically integrated group of mining and metallurgical enterprises. SCM (71.24%) and Smart Holding (23.76%) are the main shareholders and jointly manage the holding.

The official exchange rate as on May 15, 2024, is UAH 39.68/$1.