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Upgrading equipment and technologies – 2018 prospects of VMMP
Upgrading equipment and technologies – 2018 prospects of VMMP

27.11.2017

Upgrading equipment and technologies – 2018 prospects of VMMP
 
Vilnohirsk Mining and Metallurgical Plant, a subsidiary of PJSC UMCC, has had the mining plan for 2018 approved. The processing department of the plant also put into operation the first line of hydrotransport after it was moved. VMMP Director Andriy Storchak speaks about the production prospects that these events open for the subsidiary and about the strategy of the plant's development next year.
 
On November 22, defense of the plan for mining works at the plant for 2018 took place at Kryviy Rih Mining and Industrial Department of the Main Department of the State Labor Service in Dnipropetrovsk Oblast. The plan was defended and the indicators were approved. “Now, we have a clear plan of how we will be working next year,” commented Andriy Storchak.
 
- How will the volumes of stripping works next year will differ from this year?
 
 - According to the approved plan of mining works for 2018, mining volumes will be much lower than this year, due to the increase of volumes of stripping works. We have not fully fulfilled the volumes of stripping works in 2017, which is why we will have to include them in the next year’s plan. However, mining volumes will be reduced very little – within 3-5% from this year’s plan and if we work well, it is possible that we can overachieve the plan.
 
- In the end of November, the transfer of the first line on the North stretch was completed. What production tasks does this help to solve and what is the expected economic effect?
 
- Every year, under the mining plan, we transfer one of the hydrotransport lines in order to preserve the optimal distance of ore sands transportation. On November 22-23, the transfer of the first line on the North stretch was completed. This is the largest infrastructural project of the year.
The transfer of the line substantially reduced – by about 800 meters – the distance of transportation of the mined minerals from the mine face to the line. We thus improved the efficiency of our vehicle pool, which leads to substantial economy of the fuel and lubricants, increased the rate of loading the line and, what’s more important, provided stability of ore sand supply.
Today, we have a certain shortage of dump trucks and the less the distance of transportation the higher the efficiency of transport use.
As for the economic effect, according to our calculations, transfer of the first line cost approximately UAH 4.7 mn. However, the use of the line will cover these costs by several times within two years. In any case, this is absolutely beneficial.
 
- What development prospects do you see next year?
 
 - We have certain achievements in the plant's development. In 2017, we have made some serious investments into equipment and machinery to compensate for the shortage the plant experience when it was transferred into state ownership. Everybody remembers that the former lessee kept the new equipment, in particular mining machinery, and left the old one for us. That is why, we have experience serious shortage of mining transport since the start – BelAZ vehicles, bulldozers, scrapers. Only this year, we managed to begin investing into it.
 
This year, we purchased five BelAZ vehicles, a bulldozer, supplementary equipment, cars. Next years, we will keep up the pace, or will even increase it. We have ambitious plans – we must purchase up to ten BelAZ, three new bulldozers, a new scraper, cranes, weightlifting mechanisms and a lot of other equipment. We hope that we will succeed and will thus stabilize the plant’s operation even further.
 
In addition, we have already begun development of projects on further use of the company after the reserves of main ore sands of the Sarmat Level are exhausted. We are discussing cooperation with several R&D institutions. Next year, we will seriously get into this issue.
 
Finally, we are very hopeful that in 2018, as was planned by the Cabinet of Ministers of Ukraine, both VMMP and PJSC UMCC will be privatized and we will get a full-fledged system investor that will help realize our plans for re-equipment of the plant, as it is impossible to get substantial investments being a state-owned enterprise.
 
It is a known fact that the state is the worst investor and there are many examples in many countries of this.  So in order to develop and not only maintain the current level, we need an investor. We hope that next year we will find one.