Overseas visitors

Oligarchs are charmed by direct reduction of iron technology.

Purchasing the license from Japan Kobe Steel to use ITmk3 technology (Ironmaking Technology Mark 3) in Ukraine, Russia and some other countries Hares Engineering (company is owned by the Syrian businessman Youssef Hares - a partner of InGOK owner Vadim Novinsky on Moldovan metal plant) intends to attract Ukrainian FIG - holders of iron ore raw materials – involving to the project Turkish and Moroccan metallurgists.

As previously reported, at the end of July, Smart Group, Kobe Steel and Hares Engineering have signed a protocol of intention to build a plant with the capacity of 0.5 million tons of metal materials at Ingulets GOK. According to the Managing Director of Hares Engineering Razaz Younes, an agreement on exchange of information necessary for the construction of a similar production has been signed by them and Kobe Steel with Poltava GOK. The most rapid advancing of technology is at SevGOK and CGOK of Rinat Akhmetov. Until January 15, the proponents must prepare feasibility study for construction of one ITmk3 plant at each of these plants. Because the owners of the integrated mining and steel companies are to receive most dividends from the use of metallized raw materials, Japan-Syrian project proponents hope that at least one module is to be constructed.

According to preliminary estimates, the cost of a plant to produce 0.5 million tons of metal materials in the year amounted to 150 million dollars. For the installation of the equipment, most to be issued by Ukrainian machine-builders, requires 2-2,5 years. According to Razaz Younes, plants will be offered to GOKs with technical guarantees for sales. Obviously, this is a contract on the profit distribution with share of each party depending on the size of investments, the role of sales, etc. Hares Engineering sees Turkey and Morocco metal plants as a prospective partners. Metallurgy of these countries are very dependent on imported ore, so surely are to purchase a relatively inexpensive and high quality raw materials.