Experts will examine the possibility of introducing ITMk3 at KGOKOR

The Ministry of Industrial Policy of Ukraine will establish a working group with Hares Group (Austria), the exclusive licensee of third generation direct reduction of iron technology ITmk3 in CIS (Ironmaking Technology Mark Three) and Kobe Steel (Japan) to introduce ITMk3 in Kryvyi Rig mining plant of oxidized ores (KGOKOR).

According to a press release of Ministry of Industrial Policy the discussion of implementing ITmk3 was held during the meeting of Minister of Industrial Policy Vladimir Novitsky on Tuesday with the executive vice president, representative director of Kobe Steel Takashi Matsuani, managing director of Hares Engineering Razaz Younes and other companies.

As states the press office, a meeting was held in accordance with a memorandum on cooperation in the development of technical and economic decisions about the project Itmk3 of direct reduction of iron and low-grade coal processing between the Ministry of Industrial Policy, Kobe Steel and Hares Engineering.

The report also reminds that V. Novitsky signed the document in March 2009  during his participation in the second general meeting of the Coordinating Board on issues of economic cooperation between Ukraine and Japan and Business Cooperation Committee, "Ukraine - Japan" Japanese Business Federation "Keidanren" in Tokyo. In particular, a memorandum was sent to conduct reconstruction and technical modernization of the industrial complex of Ukraine to introduce modern energy-efficient technologies, engaging international investors to finance the general activities and projects in the domestic industrial complex, etc.

"During today's meeting a cooperation issue was discussed to implement modern energy saving technology of the oxidized ore processing of Krivyi Rig basin, in particular, their use in the construction of Krivyi Rig mining plant of oxidized ores (KGOKOR). In addition, the meeting agreed to establish a joint working group for the complex study of this issue and the development of the proposals for the Governments of Ukraine and Japan, "the press-service states.

As previously reported by the Deputy Minister of Industrial Policy Sergei Grishchenko, the working group is to prepare specific proposals for the introduction of ITMk3 technology at KGOKOR.

"As long as there is the answer - it is possible to implement, but what level of costs, what would be the economic indicators, what are the cash flow. In addition, we have warned our colleagues that at the moment KGOKOR remains a subject of international law, and a number of issues we need to adjust in the international legal terms, "- explained the deputy minister, adding that also a number of organizational issues are to be discussed at KGOKOR

Construction of KGOKOR had begun in 1985. After collapse of the Soviet Union Ukraine became a successor of the project. However, in May 2007, Slovakia had refused to participate in the construction completion of KGOKOR, but would like to receive a compensation for its share by way of money or goods. In late October of the last year Romania has also expressed no interest in the further completion of KGOKOR and intending to reimburse its investments.

According to the preliminary data the total amount of investments necessary to complete the construction and commission KGOKOR is around $ 800 million

"Arcelor Mittal Kryvyi Rig” JSC has decided to suspend the participation in the long-term investment projects, including - completion of KGOKOR construction due to the deteriorating situation in the industry. At the same time, Russian "Metalloinvest” and Dnepropetrovsk “Smart group" had specifically created “Ukrainian ore-metallurgical company "(URMK) for KGOKOR project at the end of 2008, thus confirming its interest in the given object.

URMK has already spent around $ 40 million in the project, particularly into the statutory fund of JSC and $ 5 million to settle the number of KGOKOR debts.

According to the evaluation of the State Property Fund (SPF) of Ukraine KGOKOR assets amount to $ 354.760 million, liabilities - $ 275.673 million

According to SPF the debt of Ukraine for KGOKOR as of 1 January 2007 to Romania is $ 353 million, Slovakia - $ 115.1 million, Bulgaria - $ 1.4 million, Germany - $ 47.34 million, total debt - 517.43 million.

Источник:УКРРУДПРОМ

07 июля 2009 г.