Black Iron Inc., a Canadian mining company, is making significant strides in its ambitious Shymanovske iron ore project in Ukraine. Located in Kryvyi Rih, one of the country’s key mining regions, the project aims to produce 4.5 million metric tons of iron ore annually, positioning the company as a major player in the global iron ore market.
The company’s subsidiary, Shymanovske Steel LLC, has already initiated the process of securing the required permits for open-pit mining at the northern part of the Shymanovske deposit. This step marks a crucial move toward operationalizing the project, which has faced several challenges since its inception.
The Shymanovske deposit is set to become one of the most significant iron ore sources in Ukraine, with annual production slated to reach 4.5 million metric tons of ore. The mining operation will involve large-scale open-pit mining, covering an area of approximately 660 meters by 390 meters, with a depth of up to 80 meters.
The stripping operations required to expose the ore will amount to a total of 5.13 million cubic meters, of which 1.31 million cubic meters will be ore. This scale of operations reflects the potential of the Shymanovske deposit to become a key resource for both Ukraine and international markets.
The Shymanovske project holds significant strategic value for Black Iron Inc., as it not only provides a substantial iron ore source but also benefits from existing regional infrastructure. The region has well-developed access to critical resources such as electricity, railways, and ports, all of which will facilitate the efficient transport and export of ore once production begins. These logistical advantages are expected to significantly expedite the project’s implementation.
One of the primary obstacles for the Shymanovske project has been securing the land required for mining. The land is currently under the jurisdiction of Ukraine’s Ministry of Defense, making negotiations a complex process. However, Black Iron has made progress, having reached a preliminary agreement on compensation for the land plot.
The negotiations with the Ministry are seen as a critical step toward ensuring the project’s long-term viability. Once the land issue is resolved, the company expects a smoother path to obtaining the necessary permits and starting operations.
Black Iron acquired the rights to the Shymanovske deposit back in 2010, but the project has faced several setbacks over the years. Notably, in 2013, the largest Ukrainian mining and metallurgical group, Metinvest, took a 49% stake in the project for $20 million. However, Metinvest eventually withdrew from the partnership, citing strategic differences.
Despite these challenges, Black Iron remains optimistic about the project’s potential, especially given its proximity to major mining and metallurgical enterprises in the region, including ArcelorMittal Kryvyi Rih. These large-scale operations present opportunities for collaboration and market access, further enhancing the project's value.
To bring the project to fruition, Black Iron has outlined a two-phase capital investment plan. The first phase of the project, which includes the development of the mining infrastructure and initial production, is expected to cost $452 million. The second phase, which will further expand production capabilities, is estimated at $364 million.
Once operational, the Shymanovske deposit is expected to play a pivotal role in Ukraine’s mining industry, particularly in terms of providing high-quality iron ore to meet the growing demands of global markets. With a robust investment plan and strategic location, the project has the potential to significantly bolster Black Iron Inc.'s position in the competitive iron ore sector.
