Ukrainian steel producer ArcelorMittal Kriviy Rih has decided to cancel the implementation of its bilateral consortium with fellow Ukrainian steelmaker Industrial Union of Donbass (ISD). The consortium in question was established in July 2008 for the purpose of completing the construction of the country's Soviet-era iron ore plant Krivoy Rog Mining and Processing Works of Oxidized Ore (KGOKOR), and also for the construction of a new deepwater port on the Black Sea shore. The decision to cancel was taken due to the current economic situation.
ArcelorMittal Kriviy Rih states that it has reexamined the priority of its investment projects, and will continue the implementation of its long-term expansion plans, and to invest its funds in the optimization of its production processes, in environment protection and in the health and safety of its workforce.
As SteelOrbis previously reported, the commissioning of KGOKOR was to allow both Ukrainian steel producers to satisfy their needs in high quality iron ore, while the construction of the port would allow an increase in Ukraine's shipping and sea transit capacities, which are 30 years behind time.