CMC Cometals invests $30 mln in Likarivske depositMay 3, 2017
On the 2nd of May CMC Cometals and Velta LLC signed the Memorandum on strategic cooperation to build a mining and processing complex in Kirovohrad region.
The Framework Document provides that American CMC Cometals will prefund the construction project of mining and processing complex at Likarivske deposit of titanium ore. For Ukrainian company Velta this step is the planned strategic expansion of Byrzulivske mining complex, which has been working in Kirovohrad region for 5 years.
This Memorandum symbolizes resumption of cooperation between CMC and Ukraine, as it has been more than 20 years since this company cooperated with Ukrainian mining sector. Despite the risks associated with investing in country, CMC and Velta found a formula that satisfied all parties.
The next stage following the signing of the Memorandum on strategic cooperation will be obtaining of all the required approval documents to start the construction. Velta fully completed the geological exploration of Likarivske deposit and is now on the facility design stage. The nominal power of mining and processing complex is planned to be about 120 thousand tons of ilmenite annually. The new facility will create 300-350 jobs.
“More than five years ago we opened a modern, first since independence mining and processing complex. Now we are on the stage of expansion, and this is not yet the final goal. The vision of Velta is production of Ukrainian technological final product” – commented Andriy Brodskyy, CEO of Velta LLC.
The capital investments discussed by parties are $30 million.
CMC Cometals is the world leader in marketing and distribution of industrial raw materials and a division of Commercial Metals Company. СМС is a global international company for production, processing and trading metals. For more than 100 years of its history, the company has been represented in more than 12 countries. СMC company stock has been on American Stock Exchange since 1960. In 1970 Commercial Metals Company was for the first time listed in the rating of Fortune 500. Eliezer Skornicki is President of Cometals Commercial Metals Company.