The Ukrainian mining and metals business group Metinvest is to supply 24 million metric tons of iron ore concentrate over a period of three years to Ukraine-based steel producer Ilyich Iron and Steel Works of Mariupol ( Ilyich), according to Alexander Vilkul, honorary president of Metinvest's iron ore producing subsidiaries Central and Severniy GOKs.
In particular, Metinvest will provide Ilyich with six million metric tons of iron ore concentrate from its Inguletskiy GOK subsidiary to be further processed into sinter at Ilyich's sintering plant.
In addition, Metinvest is planning to supply Ilyich with approximately two million metric tons of iron ore concentrate per year from Central GOK and Seversniy GOK for the production of sinter.
The companies are expected to conclude the contract on the issue in a couple of weeks' time.
Earlier this year, Metinvest has concluded long-term iron ore supply agreements with Ukrainian steelmakers Zaporizhstal and Industrial Union of Donbass.
In 2007, the iron ore facilities of Metinvest produced 39 million metric tons of iron ore, accounting for a two percent share of the world market for this raw material and for a 3.5 percent share of the world market for pellets.
Meanwhile, Alexander Vilkul also stated that Metinvest has continued to invest in the capacity expansion of its iron ore producing division, with the company planning to increase its iron ore production by 30 percent to 52 million metric tons per year in the next five years. In particular, an increase of 50 percent to 20 million metric tons per year is expected at Severniy GOK, while an increase of 30 percent to 18 million metric tons is expected at Inguletskiy GOK.