ArcelorMittal Kriviy Rih and Ilyich form consortium to finish KGOKOR

Thursday, 27 September 2007 13:56:13 (GMT+3)   |  
The largest Ukrainian steel producer ArcelorMittal Kriviy Rih has formed a consortium with fellow local steel producer Ilyich Iron and Steel Works of Mariupol (Ilyich) in order to make a bid to conclude the construction of the Ukraine-based Krivoy Rog Mining and Processing Works of Oxidized Ore (KGOKOR).

Under their new proposal, the consortium plans to invest about $800 million in KGOKOR's completion. In addition, the consortium said it will reach an output of 3.5 million metric tons of pellets in 12 months following the beginning of final stage of KGOKOR's completion, while the production will increase to 10.7 million metric tons of pellets upon the completion of the construction works.

At the beginning of September, the Ukrainian State Property Fund (SPFU) announced that on September 20, it would sign an agreement to form a joint venture company with Russian companies Metalloinvest and Smart-Holding for the conclusion of the KGOKOR construction. However, the implementation of the decision has been postponed for an as yet undetermined period.


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