Lebedinsky GOK, Russia Metals and Mining
In H2 2016 Metalloinvest will increase the shipment of iron ore pellets to NLMK by 900 thousand tons. The shipment to NLMK is held by the Lebedinsy and Mikhailovsky GOKs.
In H1 2016 the Poltava GOK (in the structure of Ferrexpo) exported 5.743 mln tons of iron ore pellets to Europe, Middle East, Japan, Korea and China.
In Jan-August 2015 the Poltava GOK stayed the leader on the production and export of pellets among the CIS enterprises.
The iron ore enterprises of the CIS in Jan-August 2015 produced: Poltava GOK (the Ukraine) – 7,658 thousand tons, Kostomukshsky GOK (Russia) -7,064 thousand tons, Mikhailovsky GOK (Russia) – 6,787 thousand tons, Severny GOK (the Ukraine) – 5,512 thousand tons, Kachkanarsky GOK (Russia) – 4,386 thousand tons.
In Jan-August 2015 the Poltava GOK exported 7,667 thousand tons of iron ore pellets (to Europe and near abroad countries, Japan and China); the Severny GOK – 2,911 thousand tons, Kostomukshsky GOK – 2,199 thousand tons, Central GOK (the Ukraine) – 1,520 thousand tons, Lebedinsky GOK (Russia) – 1,363 thousand tons.
The fall in prices on the global market of iron ore has decreased the financial performance of the largest Russian producer Metalloinvest. In the first six months of this year, the company reduced its revenue by 31% to $2.4 billion, and the net profit - by 5.8%, to $517 million. Analysts don’t expect any significant improvement in the situation on the ore market: in the major producing countries, like Russia, any increase in theexport of raw materials against the background of the devaluation of the national currencies, and the key Chinese demand could drop significantly because of the devaluation of yuan.
Metalloinvest has published its financial results under IAS in the first six months of the current year, reduced almost all indicators, except EBITDA margin. The revenues decreased by 31% to $2.4 billion, EBITDA fell by 20.2% to $872 million, and the net profit made up $517 million, which is by 5.8% less than in the previous year. At the same time, the EBITDA margin of Metalloinvest increased by 4.9 percentage points to 35.8%, while the capital expenditures decreased by a third to $198 million. Also, the company, as compared with the end of the year, significantly reduced its net debt (by 12.2% to $3.67 billion) and the improved the ratio of the debt to EBITDA - from 2.13 to 2.11.
The Lebedinskiy GOK (part of the "Metalloinvest" company) has mined its 1.600 billionth ton of ferruginous quartzite. It took the team of the plant 56 years. The first bucket of ore at Lebedinskiy deposit was mined in 1959. Today,the Lebedinskiy GOK continues to be one of the leaders of the mining industry of the country. The plant increases production volumes, improves product quality, steadily improving the process. Particular attention is paid to the main plant conversions.
"Thanks to the investment program of the "Metalloinvest" the company's mining equipment fleet of plant is filled with new high-performance excavators and large dump trucks, advanced drilling machines and traction units. This has significantly increased the performance of the mining and transport complex and, accordingly, to provide the factory and the metallurgical complex of Lebedinskiy GOK with raw materials in sufficient quantities. Congratulations to all employees on their achievements! Good luck, happiness, health and new product success!" - the managing director of Lebedinskiy GOK, Oleg Mikhailov stated in his congratulations to the staff of the plant.
According to GC “Ukrpromvneshexpertiza”, the Poltava GOK (Ferrexpo Poltava Mining, FPM, in the structure of Ferrexpo) stays the leader on the production and export of iron ore pellets among the CIS enterprises on the results of Q1.
The production of iron ore pellets by the CIS enterprises in Q1 2015 made up: Poltava GOK (Ukraine) – 2,885 thousand tons, Kostomukshsky GOK (Russia) – 2,688 thousand tons, Mikhailovsky GOK (Russia) – 2,538 thousand tons, Severny GOk (Ukraine) – 2,027 thousand tons, Kachkanarsky GOK (Russia) – 1,631 thousand tons.
In Q1 the Poltava GOK exported 2,842 thousand tons of iron ore pellets to Europe and Middle East, Japan and China. The Severny GOK exported 1,504 thousand tons, Kostomukshsky GOK – 871 thousand tons, Lebedinsky GOK -671 thousand tons, Central GOK – 603 thousand tons.
The Ministry of Industry and Trade of Russia has expanded the list of the technological equipment, the analogues of which are not produced in Russia and the import of which is held without the payment of VAT. The new list was approved by the Government regulation #329 as of April 9th 2015.
These changes aim for the support of the existing investment projects:
-construction of the hot-briquetted iron production (Lebedinsky GOK, in the structure of Metalloinvest);
-modernization of plates’ production for the output of L.E.D., raw parts for the production of plates for L.E.D., optical plates for mobile electronics and optical elements (Monocrystall CJSC);
-production of large size plates, coils and other items for innovation aluminium alloys (Kamensk-Uralsk metallurgical plant OJSC);
-production rise of high-quality light oil products (TAIF-OC OJSC);
-modernization of production of items out of polymer materials (Europolymer Ltd).
Metalloinvest has signed a contract with ArcelorMittal for the supply of iron ore raw materials until April 2016.
According to the agreements reached, the total volume of supplies will be over 2 mln tons of iron ore raw materials of the Mikhailovsky and Lebedinsky GOKs that will be used at the European enterprises of the group.
The value of the contract is not released.
Metalloinvest of A. Usmanov has signed a contract for the supply of iron ore raw materials with the largest in the world steel making company ArcelorMittal, Metalloinvest reports.
In conformity with the reached agreement, until April 2016 Metalloinvest will ship over 2 mln tons of iron ore concentrate to ArcelorMittal. The iron ore concentrate will be used at the European enterprises of the group, is reported.
The value of the contract is not released.
“The price making for the shipped products will be in conformity with the existing market indices. The formula takes into account the dynamics of prices in the world market of iron ore concentrate”, Metalloinvest reports.
Metalloinvest thinks that iron ore price should restore by the end of 2014 with the start of seasonal demand in China, the CEO of Metalloinvest A. Varichev says. In the opinion of the company, global iron ore price is underrated by 20% - 25%.
Despite the fall in iron ore price by 42% since the beginning of 2014, Metalloinvest does not regard the level catastrophic. They do not see any prospects for super-high price and think that $100 per ton is quite normal price.