Photo: Black Iron

Canadian mining company Black Iron with assets in Ukraine has begun the process of obtaining permits for iron ore mining as part of the implementation of the new Shymanovsky iron ore project in Kryvyi Rih, according to materials reviewed by Interfax-Ukraine.

According to the publication, the subsidiary company "Shymanovskoe Steel" LLC has applied for a permit for open-pit iron ore mining in the northern part of the Shymanovskoe deposit quarry.

The total volume of overburden is planned to be 5.13 million cubic meters, including 1.31 million cubic meters of ore. It is also expected that 4.5 million tons of ore per year will be produced during the year-round operation.

Black Iron continues to advance the Szymanovsk iron ore project, having identified a priority direction for itself in the form of concluding an investment agreement with the country's government.

It is noted that the main issue remains obtaining use of the land plot under the jurisdiction of the Ministry of Defense.

Discussions with the agency led to an agreement on a preliminary amount of money that Black Iron is required to pay as compensation for obtaining this plot of land for its use.

The existing infrastructure, including access to electricity, rail, and port facilities, according to Black Iron, will allow the project to be quickly implemented to the production stage.

  • In 2010, the Canadian company Black Iron acquired the Cypriot company Geo-Alliance Ore East from Victor Pinchuk's EastOne for $13 million, with a license to develop the Shymanivka iron ore deposit.
  • On March 30, 2017, Black Iron's subsidiary, Shymanivske Steel LLC, received permission from the Kryvyi Rih City Council to prepare a land acquisition plan for the implementation of the iron ore plant construction project.
  • The Canadians have agreed to invest in the project with Cargill Incorporated , which is to invest $75 million in exchange for the right to purchase the first 4 million tons of iron ore raw materials.