(Read the full article on unian.ua)

The Canadian mining company Black Iron, which through Shimanovske Stil LLC has a license in Ukraine to develop the Shimanovskoye iron ore deposit in Kryvyi Rih, declares its readiness to start construction of the mining and processing plant in early 2022. To do this, the Company must sign a binding agreement with the Ministry of Defense on the transfer of the land on which construction will take place.

This was stated in an interview with RBC-Ukraine by Black Iron CEO Matt Simpson, UNIAN reported.

“The main problem to be solved before construction begins is the transfer of the base land to the company from the Ministry of Defense. While we are negotiating with this agency, Black Iron is doing other work that needs to be done before construction, including the completion of feasibility studies and environmental and social impact assessments of the project for the region. To begin construction in 2022, we need to sign the relevant documents on the transfer of land with the Ministry of Defense, without delay until the end of this year, “he said. 

We will remind, construction of GOK of the Black Iron project had to begin in 2014. However, due to the beginning of the war in Donbass, the project was “frozen”. The company returned to project development in 2017.  

According to him, the total investment during the life cycle of the project will be about $ 1.1 billion, of which $ 92 million has already been financed. The first phase, valued at $ 452 million, will be built on large foreign investors and loans, and the second on domestic cash flows. The capacity of the enterprise after the first phase will be 4 million tons of raw materials per year, after the second – 8 million tons. 

The company’s major shareholders include the British investment fund RAB Capital, the investment company Killik & Company also from the United Kingdom, and the Mexican Invecture Group. Black Iron also selected Cargill in a competitive tender as a co-investor in the project with the right to purchase the first 4 million tons of raw materials per year for the first 10 years of the project, receiving funding of $ 75 million. Another $ 100 million will be provided by the family office of royalties. In addition, leading European banks will provide $ 300 million in debt financing secured by a large export credit agency.

“We have already received the necessary mining allotments and a mining permit. In addition, exploratory drilling was carried out in 2012 … In November 2019, we signed a Memorandum of Understanding with the Ministry of Defense of Ukraine on the transfer of major lands for future GOK, tailings and We have been negotiating with the residents of the village of Rudnychne, because they will have to be relocated to a safe distance from the mining operations, “Simpson said. 

According to him, the planned agreement with the Ministry of Defense is beneficial for both parties. “Black Iron plans to build new apartments for military personnel and renovate the military training ground in accordance with modern NATO standards,” he said.