Canadian Black Iron Inc. presented a new feasibility study worth USD 748mln of investment into Shimanіv mining and processing plant located near the city of Kryvyi Rih of Dnipropetrovsk region of Ukraine. The business plan foresees construction of the mining establishment and the processing plant as two milestones of the feasibility study. The primary output capacity of the new mining and processing plant will amount to 4mln tons of high grade concentrate of 68% of iron and a low content of the other compounds. The phase 1 of the project will spend USD 436mln of the investment volume.
The phase 2 of the investment plan will increase the output capacity to 8mln tons of the iron ore. The rest of the needed sum for the expansion plan will derive of the proceeds from the business operations after three years following the mining combine put into operations and making it 5 years after the very start of the investment project. The business life cycle of the enterprise is esteemed to make 20 years.
The logistics facilities of the Shimanіv mining and processing plant are advantageous for the investment. These include railways feeder roads, electricity grids, and a deep water marine port not that far from the mining yards.
The feasibility study considers a long-term benchmark price for the iron ore commodity at USD 61.88 per metric ton increasing the price to USD 97.19 per ton at Yuzhny Sea Port after reloading from the railways cars.
