Ukrainian steelmaker Industrial Union of Donbass (IUD) is to build a new ferroalloys plant on the site of Ukraine's largest deposit of manganese ore, Velikotokmakskoye, which is located in the Zaporizhia region, south of Ukraine.
IUD and the Zaporizhia regional authorities in 2008 signed a memorandum of collaboration for the implementation of a manganese ore project, which includes the construction of a new 350,000 mt annual capacity ferroalloy plant. Accordingly, IUD is to invest about UAH 500 million (approx. $65 million according to current exchange rate) in the municipal company Stepnogorsky GOK, established for the development of the Velikotokmakskoye manganese ore deposit. The funds in question will be used for the construction of the plant, which will take place over about five to seven years.
Currently, the members of the project are examining the issue of the future feasibility study, before starting the development of the deposit.