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Investment in the Future: Construction of the Southern Ventilation Shaft No. 2 has Started at the Zaporizhzhia Iron Ore Plant
Thermal power generation21 October 2021
Investment in the Future: Construction of the Southern Ventilation Shaft No. 2 has Started at the Zaporizhzhia Iron Ore Plant

On October 20, 2021, the Zaporizhzhia Iron Ore Plant announced commencement of construction of the Southern Ventilation Shaft No. 2 (SVS-2). This is the first large-scale project at the mining enterprise in 30 years of independent Ukraine.

CORUM GROUP (part of DTEK ENERGY) is the project owner. The financing of the two stages of the project amounts to USD 81.6 million. Construction of SVS-2 will increase the volume of ore mining from the Pereverzevske field from the current 0.5 million tonnes to 2 million tonnes and create more than 1,500 new jobs at the ZZRK and related industries, as well as provide an increase in tax payments to the budgets of all levels and will promote further development of the economy of the region and the country.

Zaporizhzhia Iron Ore Plant (ZZRK) is one of the largest underground ore mining enterprises of the mining and metallurgical complex of Ukraine, providing work for almost 5 thousand miners. At ZZRK, a long-term development strategy of the enterprise has been prepared, which provides for the development of the Pivdenno-Bilozerske field to 1,540 m and the Pereverzevske field to 840 m. In 2020, the plant increased its investment in capital construction to UAH 441 million, while allocating more than UAH 1.1 billion to the budgets of all levels.

Dmytro Kolesnykov, General Director of ZZRK PJSC:

-A unique and large-scale project in the mining and metallurgical industry will be implemented for the first time in the history of independent Ukraine, which will ensure the stable operation of the ZZRK until 2055. This project will be implemented through the support of our shareholders and partners. Construction of the Southern Ventilation Shaft No. 2 is an example of a competent development strategy aimed at the future and an honest, mutually beneficial partnership which will yield results for more than one decade.

Jan Moder, General Director of Minerfin, ZZRK shareholder:

- 25 years ago, Minerfin became a shareholder of the Zaporizhzhia Iron Ore Plant. Since then, investment in the upgrade of production and the introduction of innovative technologies, the promotion of stable operation and development of the ZZRK have been Minerfin’s strategic goal. Our long-term cooperation, based on mutual respect and the same understanding of goals and objectives, has always brought positive results. I am confident that our joint effort will continue to contribute to the prosperity of the ZZRK and the welfare of its employees.

Yurii Ryzhenkov, General Director of Metinvest Group, shareholder of the ZZRK:

This year, Metinvest has celebrated 15 years of its operation. Company’s investment during this period exceeded USD 10 billion: every tenth dollar is Metinvest’s contribution to the development of the Ukrainian industrial sector. We believe in Ukraine, we believe in its economy, therefore we continue to invest in strengthening the positions of the Ukrainian national producer. Construction of the Southern Ventilation Shaft No. 2 at the ZZRK is a unique case for our country, and nothing like this has been built in Ukraine for 20 years. In the long term, implementation of a strategic project with a high export potential will allow the ZZRK to develop a deposit rich in iron ores, and therefore will guarantee employment of thousands of miners, create jobs in related industries, increase payments to the budgets of all levels and ensure sustainable development of the region.

Oleksandr Myronenko, General Director of Zaporizhstal PJSC, Metinvest Group:

- Work of steelmakers largely depends on the reliability of the primary processing — the iron ore plant. Construction of the Southern Ventilation Shaft No. 2 will ensure a consistently high production of our enterprises for many years, high-quality products for consumers, employment of industrialists and specialists in related industries, confident development of the region, and development of the country’s export potential. By investing in the development of the ZZRK, Minerfin and Zaporizhstal are investing in the Ukrainian economy.

Comprehensive efforts of CORUM GROUP include involvement of all service and production sites of the company in the construction of the South Ventilation Shaft No. 2. We are talking about sinking a vertical shaft to a depth of 340 meters in difficult mining and geological conditions using the artificial soil freezing method, as well as construction of a turnkey shaft surface complex.

Mykhailo Potapov, General Director of CORUM GROUP:

- Mine construction is one of the most important sectors for CORUM GROUP. Our team has extensive experience in the construction of vertical and inclined shafts, linear sinking — in Ukraine, Kazakhstan and Vietnam. Construction of the Southern Ventilation Shaft No. 2 at the ZZRK is a unique and at the same time very complex project, and it is important for us that such a project, unprecedented in Ukraine for more than thirty years, will be implemented by us. We are confident that our expertise will ensure a successful outcome for the customer.

Ildar Salieiev, DTEK ENERGY CEO:

- CORUM GROUP is an excellent example of the transformation of Ukrainian business into a company that implements ambitious projects in the mining industry. And construction of the Southern Ventilation Shaft No. 2 for the ZZRK proves it. I am confident that Corum specialists will successfully implement this project, because they have everything necessary to do so: equipment manufactured by Corum, expertise in mine construction and the DTEK ENERGY experience gained in complex projects implemented for large mining companies.

Profile:

ZZRK PrJSC is engaged in underground ore mining at the Pivdenno-Bilozerske and the Pereverzevske fields. In August 2021, the ZZRK miners produced 180 million tonnes of ore since the beginning of industrial mining.

The company actively participates in projects of socio-economic development of the territory of presence and provides comprehensive assistance to local authorities in addressing urgent issues.

CORUM GROUP, being a member company of DTEK ENERGY, is the largest manufacturer of mining equipment in Ukraine. It includes the following mechanical-engineering assets of DTEK ENERGY: Corum Miner’s Light, Corum Druzhkovka Machine-Building Plant, Corum Minespecialbuild, and Corum Repair, as well as foreign trade companies and representative offices.

CORUM GROUP has been transforming its business for over 130 years and produces innovative and safe products that combine the latest technology and well-proven engineering solutions.

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