"United Mining and Chemical Company" | News | PJSC UMCC spends nearly UAH 40 mn for the renewal of VMMP's motor pool

PJSC UMCC spends nearly UAH 40 mn for the renewal of VMMP's motor pool
PJSC UMCC spends nearly UAH 40 mn for the renewal of VMMP's motor pool

24.07.2017

On July 21, the long-awaited heavy vehicles arrived at VMMP subsidiary – four BelAZ-75473 (45 t) trucks and PAZ bus for the total amount of UAH 35 mn. This is the first substantial investment of the company into renewal of the subsidiary's motor pool that will help considerably increase stripping works.
In the last five years, Vilnohirsk Mining and Metallurgical Plant hasn't renewed its fixed assets, and its motor pool. As is known, upon the end of the lease, the plant found itself in a situation, when the old hardware and machines were worn out, while the new ones, purchased by the lessee, left the plant right after the lease ended. That is why, in the past three years, UMCC was forced to involve third parties in order to fulfill the plan for stripping and mining works, which resulted into substantial costs and affected the production cost of the plant’s products. “Over the past five years, VMMP’s fixed assets have not been renewed; the equipment and hardware have not been purchased,” says the plant’s chief engineer Oleksandr Prokopenko.
To fix this economically unsubstantiated situation, the company's management decided to invest into renewal of own motor pool, in particular, heavy open-pit mining hardware. That is why the purchase of four BelAZ trucks is such an important event for the company and VMMP. “These are very long-awaited supplies,” comments Deputy Chief of Mining Transport Section Ivan Honchar. “Since BelAZ vehicles and buses at the company are extremely worn, it was crucial for us to purchase these vehicles in order to fulfill planned production tasks and personnel transportation.”
This year, VMMP has planned a rather large volume of stripping works with the plans for 2018 being even more ambitious. Prokopenko explains that in order to fulfill these plans, the company needs to involve even more heavy trucks for open-pit mines. “We decided that to achieve the task for stripping works we are short of BelAZ trucks. In addition to the four purchased 45-t vehicles, we need to buy at least four more of the same kind; otherwise we will have to involve third party organizations, whose services are very expensive. In order to successfully compete on the titanium market, we must reduce production costs. Investments into heavy equipment and vehicles is the best solution in this situation, as it allows us to fulfill the plan for stripping and mining of sands using only our own resources,” says Prokopenko.
For this reason, PJSC UMCC continues modernization of the subsidiary's motor pool as well as processing production. “Last year and this year, the company purchased new equipment for the processing production and new transport vehicles for the mining production,” tells the subsidiary’s chief engineer. He says that the four BelAZ trucks for UAH 34 mn and a bus for over UAH 1 mn were received as a part of the UMCC’s program on motor pool renewal.
As a reminder, recently the company also purchased for VMMP subsidiary five UAZ-Farmer pickup trucks, two Niva vehicles, new GAZel and PAZ for the total amount of around UAH 6 mn. The use of these vehicles expanded the possibilities of the mining and transport production.
Acting Chairman of the Board at UMCC Oleksandr Hladushko believes that further renewal of the VMMP's motor pool planned by UMCC will greatly increase own production resource of the subsidiary, which is crucial for the planned increase of stripping and mining works. “Capital investments into purchase of new heavy machinery and hardware and passenger transport are economically justified. We can increase the output of titanium products and take a larger niche in the global market, competing with other players, primarily in product costs indicators. Taking that into account, we plan to continue to renew the motor pool not only at VMMP, but also at the other subsidiary – IMPP.”
In particular, the subsidiaries are expected to shortly receive several more passenger vehicles – Renault Duster cars, Ford Transit minivan and Toyota lift trucks.