"United Mining and Chemical Company" | News | Four years of sustainable growth

Four years of sustainable growth
Four years of sustainable growth

07.08.2018

On August 12, PJSC United Mining and Chemical Company will celebrate its 4th anniversary. Oleksandr Gladushko, Acting Chairman of the Board at PJSC UMCC, speaks about the plans and achievements of the company.
 
  • Are you satisfied with the company’s dynamics, have all the plans been achieved?
  • Let me remind you that our subsidiaries were returned from the lease and transferred into the management of PJSC UMCC in September 2014. The key task that was set by the government for the company’s management at that time was to increase proceeds to the national budget, which was impossible without positive financial result.
 
I will say with confidence that we successfully fulfilled this task. In 2014, the state received UAH 16.9 mn from the company in taxes and mandatory payments, while in 2017 – the amount reached UAH 875.7 mn. Just imagine that dynamics of payments grew nearly 52 times!
 
Last year, PJSC UMCC was included in the TOP 100 most profitable state-owned enterprises in Ukraine and TOP 5 largest taxpayers in the mining industry, having paid the state record-high dividends in the amount of UAH 321.8 mn. This year, the company topped this indicator and paid nearly UAH 333 mn in dividends to the state.
 
Such positive dynamics would have been impossible without increase of profits at the company. The increase was achieved through growth of product sales, and, accordingly, gradual increase of output. We owe these results to our hard-working staff of many thousands.
 
  • Can we compare the condition of the plants now and four years ago?
  • Technical readiness of the subsidiaries to independently perform production tasks then and now is hard to compare. Equipment at the plants has improved manifold! After the lease ended, supply of special machinery and equipment at plants did not exceed 50%, while in 2018 it increased nearly twice to 90% thanks to investments. This particularly applies to Vilnohirsk Mining and Metallurgical Plant.
 
Although we are a state-owned enterprise and we have to pay a lot of taxes and fees, it did not prevent us from substantially renewing fixed assets of own subsidiaries. Since the end of last year, the company purchased 47 vehicles for our plants, of which 24 are special-purpose vehicles. The company has invested nearly UAH 200 mn in renewal of the transport pools of the subsidiaries alone. The total amount of investment into technical re-equipment and renewal of assets has exceeded UAH 1 bn at this stage. This is evidenced by an increase of authorized capital of the company from UAH 700 mn in 2015 to UAH 3 bn in 2018. So, I believe that the company does have an effective management.
 
Now, it is easy to recollect how hard it was in 2014-2015 to begin mining, as the lessor took all new machinery for open-pit mining with him and for a long time we have to involve third parties in order to fulfill the plan for stripping and mining. That was additional burden on the company. Now, I believe all these trials are behind us.
 
  • What are the company’s plans for the near future?
  • The company is confidently holding its ground in the turbulent global titanium market, competing well. However, the future of such company as ours is impossible with the prospect of development of new areas. That is why we are waiting on the permission from the government to begin developing 154 ha of Mezhyrichne Deposit in Korosten and Khoroshiv counties by Irshansk Mining and Processing Plant. These plans also involve reconstruction of the processing factory No. 8 and construction of the new factory No. 9 for processing new products.
 
At VMMP, we plan to build a factory for processing the so-called ‘tailings’. At the moment, the plant does not have a prospect of developing new areas, we need to switch it to secondary processing and additional extraction of useful products from tailings.
 
The company has planned substantial investments for these purposes – over UAH 200 mn. At this moment, routine work is being carried out on drafting required documentation, performing economic calculation of feasibility of introduction of one or another technology.