Black Iron Inc. Secures 248 Hectares in Kryvyi Rih for Shymanivske Iron Ore Project
In a significant development for its Shymanivske iron ore project, Black Iron Inc., a Canadian mining company with assets in Ukraine, has entered into a multi-year lease agreement with the city of Kryvyi Rih. The lease covers a critical 248 hectares of land, pivotal for advancing the project, which aims to develop one of Ukraine’s largest iron ore deposits. This agreement, announced in a company press release, is a key milestone in the project’s timeline and will allow for essential preparations and the implementation of critical infrastructure.
Strategic Importance of the Land Lease
The leased 248-hectare area plays a crucial role in the development of the Shymanivske deposit, which is located in the Dnipropetrovsk region of Ukraine. The land encompasses a significant portion of the proposed future open-pit mine, with the boundary extending to the west, near land used by the Ministry of Defense. This area is integral not only for mining operations but also for the establishment of associated infrastructure, such as the processing plant, tailings dams, and waste rock dumps.
In the future, Black Iron Inc. is considering either leasing or purchasing additional land to support the development of further infrastructure, which will be critical to the efficient operation of the mine. The company is also focused on completing environmental and engineering studies, which will help move the project forward and ensure compliance with regulatory requirements.
A Long-Awaited Milestone in the Project's History
Black Iron Inc. acquired the rights to the Shymanivske iron ore deposit back in 2010, but its progress was hindered for several years by various operational and financial challenges. The lease agreement marks an important step toward advancing the project after several setbacks. In 2013, the Ukrainian mining and metallurgical group Metinvest acquired a 49% stake in the project for $20 million but later withdrew, leaving Black Iron to continue pursuing development on its own.
The project has been delayed several times, but this new lease agreement signals a turning point, as it allows Black Iron to now focus on securing the necessary Special Mining Permit No. 4537 for mining activities. This lease is an essential component of renewing the permit, which will help streamline future operations and ensure compliance with Ukrainian mining laws.
Capital Investment and Production Goals
The Shymanivske iron ore project is expected to require a substantial capital investment to reach its production goals. The company has outlined that the first stage of the project will require $452 million, while the second stage will need an additional $364 million. These stages are part of a broader development plan that will see the creation of one of Ukraine’s most important sources of iron ore.
The project’s open-pit mine is expected to measure 660 meters by 390 meters, with a depth of up to 80 meters, making it one of the significant mining operations in the region. The annual production capacity of the mine is projected to reach 4.5 million metric tons of ore, contributing substantially to the global iron ore market.
In addition, the total volume of stripping operations (which involves the removal of waste material to access the ore) is expected to be 5.13 million cubic meters, of which 1.31 million cubic meters will be ore. These figures reflect the scale of the project, which will play a key role in providing raw materials for steel production.
Proximity to Key Mining and Metallurgical Enterprises
One of the major advantages of the Shymanivske iron ore project is its strategic location, close to several large mining and metallurgical enterprises in the region. The proximity to ArcelorMittal Kryvyi Rih, one of the largest steel producers in Ukraine, ensures a stable market for the iron ore produced at the site. This closeness allows for potentially lower transportation costs and makes the project even more attractive to investors and stakeholders in the steel industry.
With access to key infrastructure and a significant local market, the Shymanivske deposit is positioned to become a critical component of Ukraine’s mining sector and a key supplier of iron ore to both domestic and international markets.
Environmental and Engineering Studies to Advance the Project
The successful completion of environmental and engineering studies is a critical step for the Shymanivske project, as it will determine the feasibility of large-scale mining operations and ensure the project aligns with environmental sustainability standards. Black Iron Inc. has indicated that these studies will be an ongoing focus as the company seeks to obtain the necessary regulatory approvals for full-scale development.
These studies are crucial not only for securing the Special Mining Permit but also for minimizing environmental impact, ensuring that the mining operations comply with local environmental regulations and best practices in sustainable mining.
Future of Black Iron Inc. and the Shymanivske Project
Looking forward, Black Iron Inc. is optimistic about the future of the Shymanivske iron ore project. The successful leasing of 248 hectares marks a significant step toward realizing the company’s vision of creating a major iron ore production hub in Ukraine. With a projected annual production of 4.5 million metric tons, the project has the potential to be an important source of high-quality iron ore, especially in a region with significant demand for raw materials for steel production.
The company’s commitment to infrastructure development, environmental studies, and regulatory compliance will be key in ensuring the successful implementation of the project. As global demand for iron ore remains strong, particularly in key steel-producing nations, Black Iron Inc. is well-positioned to capitalize on the growing market for iron ore and expand its operations in Ukraine.
