UMCC Titanium working on ramping up mining at VMMP after resuming operations at IMPP mines

MOSCOW. July 25 (Interfax) - UMCC Titanium, a Ukrainian miner and processor of titanium raw material, is working on boosting output at its Volnogorsk Mining and Metallurgical Plant (VMMP), Ukrainian media reported, citing UMCC acting CEO Yegor Perelygin.

"We're working these days at VMMP. The dynamic is as follows: we will fulfil our internal monthly plan for mining. It's difficult, but we're finding resources for maximum mining. We will meet key production targets," Perelygin was quoted as saying.

He said VMMP has partially prepared a work area for next month, is carrying out stripping work and making efforts to steadily ramp up production.

However, there were unexpected disruptions in hydraulic transport - the washing system and slurry pipeline - due to power outages, but everything was quickly rectified and the situation is now under control, Perelygin said.

"The situation is difficult. [...] But the branch is working. There are sufficient contracts for sales. We're closing the first half with a net profit," he said.

The Ukrainian government approved the conditions for the privatization of UMCC on July 12, scheduling an auction for all 1.944 billion shares in the company for October 9 and setting the starting price at UAH3.899 billion.

Earlier in July, UMCC Titanium resumed mining titanium raw material and full operations at the open-pit mines of its Irshansk Mining and Processing Plant (IMPP), which was shut down in October 2022 due to the absence of contracts to sell ilmenite concentrate and substantial inventories of finished product in storage.

The company's management has now secured a major contract for IMPP's product with a North American customer, so operations needed to be fully restored, UMCC said earlier.

UMCC began actual operations as a state company in August 2014, when the Ukrainian government decided to give it control of the assets of the VMMP and IMPP. They were previously leased by companies controlled by businessman Dmitry Firtash.

UMCC previously sold its products to more than 30 countries. Its main markets were the European Union, China, Turkey, the United States and countries in Africa.

The official exchange rate was UAH41.23/$1 on July 24.