Mikhailovsky GOK announced of revenue fall

The CEO of Metalloinvest, A. Varichev, complained about the grown transport expenditure which seriously influenced on the revenue of the largest enterprise in the region – the Mikhailovsky mining and processing plant in the conditions of low prices for metallurgical goods.

The Governor of the Kursk region, A. Mikhailov, held a working meeting with A. Varichev, CEO of Metalloinvest, that holds the Mikhailovsky GOK. The parties discussed the results of the execution of the social partnership program in 2015 and perspectives for 2016, as well as the current situation in the metallurgical sector and world markets.

A. Varichev said that the Mikhailovsky GOK faced a number of problems. If in 2009 the miners faced a crisis with the demand, now it is about the price fall for the plan’s products. They are at such a low level, that the expenditure for transportation and accompanying expenditure take the profitable part of the enterprise. And our goal is to balance the demand, possibility of supplies, availability of markets, CEO said.