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Investing in the Future: the Construction of the Southern Ventilation Shaft No. 2 Commenced at the Zaporizhzhya Iron Ore Plant

Investing in the Future: the Construction of the Southern Ventilation Shaft No. 2 Commenced at the Zaporizhzhya Iron Ore Plant

On October 20, 2021, the Zaporizhzhya Iron Ore Plant announced the construction of the Southern Ventilation Shaft No. 2 (SVS-2). Such a large-scale project at a mining enterprise is being implemented for the first time over 30 years of independence of Ukraine.

The Corum Group is comprehensively responsible for the project implementation (which is a part of DTEK Energy). Funding for the two project phases amounts to about USD 81.6 mln. The construction of SVS-2 will increase the production of ore from the Pereverzivske deposit from the current 0.5 mln t to 2 mln t and create more than 1,500 new jobs in the ZZRK and related industries, as well as increase tax revenues at all levels and stimulate the further development of the region and the country economy.

The Zaporizhzhya Iron Ore Plant is one of the largest Ukraine’s mining and metallurgical enterprises engaged in the underground mining and employing nearly 5 thousand miners. The ZZRK developed the long-term development strategy of the enterprise providing for the development of the South-Bilozirske deposit down to the formation depth of 1540 m and the Pereverzivske deposit down to the formation depth of 840 m. In 2020, the Plant increased its capital investment to UAH 441 mln for major construction works, having paid more than UAH 1.1 bln to all levels of budgets.

Dmytro Kolesnykov, Director General of ZZRK:

- For the first time in the history of the independent Ukraine, a unique and large-scale project in the mining and metallurgical industry will be implemented, which will ensure the ZZRK’s steady operation until 2055. The implementation of this project has become possible due to the support of our shareholders and partners. Construction of the Southern Ventilation Shaft No. 2 is an example of a future-oriented and sensible development strategy and a fair, mutually beneficial partnership, the results of which will bear its fruits for decades.

Yan Moder, Director General of Minerfin Company, shareholder of ZZRK:

- 25 years ago, Minerfin became a shareholder of the Zaporizhzhya Iron Ore Plant. Since then, investment in the modernisation of production and the introduction of innovative technologies, the promotion of sustainable operation and the development of ZZRK have been the strategic objective of the Minerfin. Our years-long cooperation, based on mutual respect, an identical understanding of goals and objectives, has always yielded positive results. I am sure that our cooperation will continue to contribute to the advance of the ZZRK and the well-being of its employees.

Yurii Ryzhenkov, CEO of the Metinvest Group - shareholder of ZZRK:

- This year, Metinvest celebrated the first 15th anniversary of its operation. The Company’s investment during this period exceeded USD 10 bln, i.e. every tenth dollar invested in the Ukrainian industrial sector is invested by the Metinvest. We believe in Ukraine, believe in its economy, and therefore we continue to invest in strengthening the position of the Ukrainian national producer. The construction of the Southern Ventilation Shaft No. 2 at the ZZRK is a unique case for our country. Nothing of a kind has been built in Ukraine for 20 years. In the long term, the implementation of a strategic project with high export potential will enable ZZRK to develop a rich iron ore deposit, thus ensuring the employment of thousands of miners, creating jobs in related industries, increasing budget allocations at all levels and ensuring the sustainable development of the region.

Oleksandr Myronenko, CEO of PJSC Zaporizhstal of the Metinvest Group:

- The metallurgists’ work depends to a large extent on reliability of the first stage in the technological process, i.e. the iron ore plant. The construction of a second ventilation shaft will ensure a steady high level of production of our enterprises for years to come. Investing in the development of ZZRK, the Minerfin, the Metainvest and the Zaporizhstal invest in the Ukrainian economy.

The comprehensive approach of Corum Group’s lies in the fact that all Company’s service and production sites will be involved in the construction of the Southern Ventilation Shaft No. 2. The point at issue is the sinking of a vertical shaft to a depth of 340 metres under difficult mining and geological conditions, using the artificial freezing of the ground, as well as the turnkey construction of the shaft surface infrastructure.

Mikhail Potapov, CEO of Corum Group:

- Mine construction is one of the most important areas of work of the Corum Group. Our team has a vast experience in the construction of vertical and inclined shafts, and linear sinking in Ukraine, Kazakhstan, and Vietnam. The construction of the Southern Ventilation Shaft No. 2 at the ZZRK is a unique and very complex project, and it is important for us that such project, which is unprecedented for Ukraine over more than thirty years, is being implemented by us. We are confident that our expertise will ensure a successful outcome for the client.

Ildar Saleev, CEO of DTEK Energy:

- The Corum Group is a great example of the transformation of Ukrainian business into a company implementing the ambitious mining projects. And the construction of the Southern Ventilation Shaft No. 2 for the ZZRK is proof of that. I am sure that the Corum experts will succeed in implementing it, because there is everything necessary for this: the equipment manufactured by the Corum, the mining expertise, as well as the experience of the DTEK Energy gained in complex projects for the large mining companies.


REFERENCE:

PJSC ZZRK performs the underground ore mining operations at the South-Bilozirske and Pereverzivske deposits. In August 2021, the ZZRK miners produced the 180 millionth ton of ore since the start of industrial mining.

The Company actively participates in the social-and-economic development projects implemented at the territory of presence and provides the comprehensive assistance to the local authorities in solving the current issues.

Corum Group is the largest manufacturer of mining equipment in Ukraine, and is part of the energy company DTEK Energy. It unites machine-building enterprises "Corum Svet Shakhtera", "Corum Druzhkivka Machine Building Plant", "Corum Minespecialbuild" and Corum Repair, as well as foreign trade companies and representative offices.

For over 130 years, Corum Group has been transforming its business and manufacturing innovative and safe products, equipped with both the up-to-date technologies and already proven engineering solutions.

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