OREANDA-NEWS. July 15, 2011. Reacting against publications of Mass Media regarding quasi attack of our company against national property, PJSC “ArcelorMittal Kryviy Rih” announces its attitude towards mining, warehousing and storage of oxidized ore in Ukraine.

PJSC “ArcelorMittal Kryviy Rih” confirms its intention for restoration of our rights through the trial to get the license for oxidized ore mining. In this license should be statements of the license belonged to OJSC “Kryvorozhstal” during its sale in 2005. This license is an integrated part of intangible assets of the company according to Sales Purchase Agreement. It means restoration of our rights. The text of that license stated that mined oxidized ores would be used for operations at Krivoy Rog Ore Mining and Processing Enterprise of Oxidized Ore. The updated license given to our company had illegal statements which deprive our right to pretend to recovery of expenses we get during mining and storage of oxidized ores.

We are confident that processing of oxidized ore is beyond the interests just of our company. In national interests of Ukraine is to faster identify its attitude towards oxidized ores which stored for several tens of years and continuing storing today. Thanks to favorable state of iron ore market the processing of oxidized ore would bring large profit to Ukraine. Solving the issue of processing of oxidized ore would open new opportunities for significant investment, employment and tax payment in various budgets - all these would positive impact economy in region and country.

Decision regarding the receiving of the license for oxidized ore mining (which statements in the license belonged to OJSC “Kryvorozhstal” during its sale in 2005) does not influence the decision of government towards future strategy of Krivoy Rog Ore Mining and Processing Enterprise of Oxidized Ore. It is very important to understand that restoration of our rights towards mining of oxidized ore or giving that license to another company in Ukraine does not deprive Krivoy Rog Ore Mining and Processing Enterprise of Oxidized Ore its raw material base or negative impact its future. Moreover we are confident that clear and transparent policy of Ukraine towards processing of oxidized ore will stimulate foreign partners of Krivoy Rog Ore Mining and Processing Enterprise of Oxidized Ore to get more flexible position during negotiations.

Our calculations testify that oxidized ore stored in Kryvbass area could be used for operations during many tens of years. Current reserves (without ore reserves of Eastern Valyavkino deposits have being stored now) would be enough many years for operations by not only Krivoy Rog Ore Mining and Processing Enterprise of Oxidized Ore. Only our company is stored now over 250 million tons of oxidized ore on the territory of about 360 hectares. In coming 5 years we will need about 300 hectares to store oxidized ore mined. Delay in solving this issue causes new problems. Storing of oxidized ore is not efficient use of land. A part of this land is rich agricultural soil. This problem means constant need to seek new plots of land for oxidized ore storage. It is a large negative impact for regional environment in form of various dumps. Besides Ukraine loses large financial benefit which the government can gain from processing of oxidized ore. The country suffers serious losses because of lack of vision for solving the problem of processing of oxidized ore from the side of Ukrainian government. We urge the government to identify its position towards national development strategy of processing of oxidized ore.