2008 Minerals Yearbook

U.S. Department of the Interior December 2010 U.S. Geological Survey Th e Mi n e r a l In d u s t r y o f Uk r a i n e By Mark Brininstool

Ukraine was a major world producer of bromine, gallium, other European consumers (Johnson and Kim, 2008; NJSC graphite, iron ore, magnesium metal, manganese ore, nitrogen, Naftogaz of Ukraine, 2008, 2009b; OAO Gazprom and NJSC peat, pig iron, silicon, steel, titanium, titanium concentrates Naftogaz of Ukraine, 2008). (ilmenite and rutile), and zirconium. The country has large coal reserves but is dependent on imports to satisfy most Commodity Review of its petroleum and natural gas demand. Ukraine was also an important transit country for petroleum and natural gas Metals from and Central Asia to Europe (Apodaca, 2009a-c; Corathers, 2009a, b; Fenton, 2009; Gambogi, 2009a-c; Jaskula, Aluminum.—Throughout 2008, the Zaporozhye aluminum 2009; Jorgenson, 2009; Kramer, 2009; Olson, 2009). smelter (ZALK), which was Ukraine’s only producer of primary aluminum, requested a reduction in its electricity tariffs. In Production 2007, the rate that the company had to pay for electricity increased by 24.3%, and in the first 10 months of 2008, it had In 2008, production of nickel mine output decreased by grown by another 45.7%. The company claimed that electricity 33%; ferroalloys, by 24%; rolled and crude steel, by 16% and costs made up 48% of its production costs. As the price of 13%, respectively; pig iron, by 13%; and iron ore, by about electricity increased, the sale price of aluminum decreased, 7%. Gypsum production increased by 56%, and feldspar, by resulting in financial losses for ZALK of about $5.6 million 9%. Bentonite production decreased by 33%; salt, by 20%; in September and $10 million in October. On November 3, limestone, by 11%; and lime, by 10%. ZALK announced that it would begin a phased shutdown of its production capacity, but the decision of whether to Mineral Trade complete the shutdown was delayed until 2009 as negotiations with the Government concerning electricity prices continued Since 2006, natural gas shipped to Ukraine for domestic (Chernovalov and others, 2008). use and for further transfer to Western Europe was sold by Iron and Steel.—In 2008, crude steel production decreased to the Russian company OAO Gazprom to an intermediary about 37 million metric tons (Mt) from about 43 Mt in 2007 and company, RosUkrEnergo AG, which shipped the gas to the pig iron production decreased to about 31 Mt from about 36 Mt Ukrainian border. RosUkrEnergo was 50% owned by Gazprom, as the world economic crisis reduced demand for iron and steel and 45% and 5% owned by two Ukrainian businesspeople, products. According to the World Steel Association, crude steel respectively. At the Ukrainian border, the gas was purchased production in Ukraine averaged about 3.5 million metric tons by CJSC UkrGazEnergo, which was a joint venture between per month (Mt/mo) from January to September 2008, but in the RosUkrEnergo and NJSC Naftogaz of Ukraine. UkrGazEnergo fourth quarter of the year, average production decreased to about sold some of the gas directly to industrial consumers and some 1.8 Mt/mo (World Steel Association, 2009). to Naftogaz of Ukraine for delivery to powerplants and other Although Ukraine has the advantage of large iron ore and organizations (NJSC Naftogaz of Ukraine, 2009a, p. 8, 27). coal deposits, inefficiencies in the steel industry have served Disagreements concerning Ukraine’s debts for natural gas to counter some of that advantage. Since the dissolution of imported from Russia resulted in Russia cutting gas supplies the Soviet Union, Ukraine failed to undertake widespread to Ukraine by 50% between March 3 and March 5 until an modernization of its metals industry, which resulted in greater agreement was reached by the two countries’ Presidents. An production costs owing to the industry’s high rates of energy agreement signed by representatives of Naftogaz of Ukraine use, less-efficient use of raw materials, and other factors. As and Gazprom settled the conflict by setting mutually agreed the economic crisis of 2008-09 began to reduce demand for upon terms of payment for gas sent to Ukraine in January and steel products, the higher production costs of Ukrainian steel February, and authorizing Ukraine to receive at least 49.8 billion producers meant they had less flexibility to lower prices to the cubic meters of Central Asian gas at the price of $179.50 per levels at which other countries were willing to sell steel products, 1,000 cubic meters during the rest of 2008. The agreement which increased the harmful effects of the financial crisis on also stated that gas transited from Russia to Ukraine would be Ukraine’s steel industry (Metall Ukrainy, 2008a, p. 6-9). received at the Ukrainian border by Naftogaz of Ukraine and Iron Ore.—Output of iron ore decreased by about 7% in not UkrGazEnergo. Also, a Gazprom subsidiary, OOO Gazprom 2008 compared with that of 2007. In the first three quarters Sbyt Ukraina, was formed to sell gas to industrial consumers of the year, iron ore gross weight production averaged about in Ukraine. Additional disputes between Ukraine and Russia 6.8 Mt/mo, but dropped to about 3.8 Mt/mo during the final regarding gas supply contracts and payments of debt that began quarter of the year when demand from steel producers decreased in October 2008 resulted in Gazprom cutting all deliveries of as a consequence of the world financial crisis (State Statistics gas intended for Ukrainian consumers on January 1, 2009, Committee of Ukraine, 2009). which seriously affected transports of natural gas intended for

Ukraine—2008 35.1 Large finance and industrial groups controlled the production considered coal production to be an important part of Ukraine’s of most iron ore and associated products (concentrate, pellets, energy security. Ukraine’s Energy Strategy to 2030 emphasized and agglomerate) and supplied most of their products to their the importance of coal in domestic energy production and laid own domestic steel production facilities. The most significant out the Government’s plans to increase coal production and its exception to this was the Mining and Beneficiation share of energy production. Difficult mining conditions, health Complex (GOK), which did not own any steel production and safety concerns, and low productivity were, however, facilities and exported about 88% of its total volume of iron obstacles to the further development of the coal industry ore products in 2008. During times of high demand for iron (Ministry of Fuel and Energy of Ukraine, 2006, p. 57-58; World ore products (as was seen in the first three quarters of 2008), Energy Council, 2009, p. 4-5). this situation made it difficult for Ukrainian steel producers A deficit of coking coal production was a significant concern that did not have their own source of iron ore to obtain raw for Ukraine’s coal and metallurgical industries. In 2008, materials at reasonable prices. In addition to domestic supply the demand for coking coal by Ukraine’s coke plants was constraints, Ukraine’s shallow port facilities restricted deliveries approximately 28 Mt, of which only about 17 Mt was provided of iron ore products from such countries as Australia and Brazil, by domestic coal producers. The deficit of coking coal took on and supplies from Russia were limited because Russian steel greater significance for the Ukrainian metals industry because producers consumed almost all the Russian iron ore produced gas prices were expected to rise and reduce the industry’s (Metall Ukrainy, 2008c, p. 41; Plc., 2009, p. 14). ability to diversify away from coke as an energy source (Metall From January to August, 2.63 Mt of iron ore products were Ukrainy, 2009c, p. 47-48). imported into Ukraine, which was a 30.7% increase compared Uranium.—Ukraine’s uranium reserves were estimated to with the same period in 2007. Imports of iron ore products be between 130,000 metric tons (t) (assuming a market price of for all of 2008 were 2.72 Mt, which was a 23.3% decrease $80 per kilogram of uranium) and 200,000 t (assuming a market compared with imports in 2007; the decrease was owing to the price of $130 per kilogram of uranium). Domestic production sharp decrease in demand for iron ore in the final quarter of the supplied about 30% of the uranium oxide needed by Ukrainian year. Exports of Ukrainian iron ore products increased by 5.1% nuclear powerplants (NPPs), which accounted for 46.8% of all (to 21.87 Mt) in 2008 compared with exports in 2007 (Metall electricity produced in Ukraine. Uranium oxide from Ukraine Ukrainy, 2008d, p. 44; 2009a, p. 44; 2009b, p. 44). was sent to Russia and processed into nuclear fuel by JSC Manganese.—The PrivatBank Group controlled Ukraine’s TVEL. The remaining nuclear fuel needed by Ukraine’s NPPs two manganese mining enterprises—the Ordzhonikidze GOK was also purchased from JSC TVEL (Metall Ukrainy, 2008b, and the Marganets GOK—which together produced about p. 61; NNEGC Energoatom, 2010; World Nuclear Association, 1.4 Mt of manganese ore and concentrates in 2008. An estimated 2010a, b). 1.5 billion metric tons of manganese ore reserves (about 70% In April, the Cabinet of Ministers of Ukraine liquidated of Ukraine’s total reserves of manganese ore) was located in Ukratomprom, which was the Government holding company the undeveloped Velikotomakskoye deposit. In December, the that was in charge of all Ukraine’s nuclear fuel production Zaporizhia Oblast Administration signed an agreement with and the national atomic energy company Energoatom. In its the Industrial Union of Donbass Corp. (ISD Corp.) to develop place, the Government established Nuclear Fuel of Ukraine a vertically integrated enterprise that would mine and process and removed Energoatom from the control of the new manganese ore from the Velikotomakskoye deposit and produce holding company to separate control of Ukraine’s nuclear fuel ferromanganese in a 350,000-metric-ton-per-year (t/yr)-capacity production and energy production sectors (Ukrrudprom, 2008a). plant to be constructed within 5 to 7 years (Ukrrudprom, 2008b). The Government intended to increase domestic production Steptekhservice CJSC had the rights to exploit about to supply all the uranium needed by the country’s NPPs and 100 Mt of economic reserves located in the Velikotomakskoye reduce the country’s dependence on foreign suppliers. The deposit. Steptekhservice was owned by Vizavi CJSC and the Government intended to invest about $2.4 billion through 2015 Zaporizhia ferroalloys plant. Since 2002, when it bought shares to increase uranium oxide production at the Ingulskaya and the in Steptekhservice, the Zaporizhia ferroalloys plant, which Smolinskaya Mines to about 1,000 metric tons per year (t/yr) was controlled by the PrivatBank Group, had successfully (combined) and to develop the Novokonstantinovskiy uranium opposed development of Steptekhservice’s license area, and deposit to produce another 2,500 t/yr. About 2,500 t of no estimation could be made as to when the deposit might be uranium oxide was needed to supply Ukraine’s NPPs, which developed (Karpenko, 2008, p. 60-61). left about 1,000 t/yr of uranium oxide available for potential export. Ukraine’s ability to meet this production goal within Mineral Fuels and Related Materials the set timeframe was uncertain. Domestic production had been expected to provide all the uranium oxide demanded Coal.—According to the World Energy Council (WEC), by Ukrainian NPPs under Ukraine’s Nuclear Fuel Cycle Ukraine was the world’s sixth ranked country in terms of total Development Program for the period of 1995 to 2004, but only coal reserves. The WEC reported that Ukraine’s total proved 20% of the required funding was ever distributed to the program recoverable reserves at the end of 2007 was about 34 Mt, of and its production goals were not reached (Ministry of Fuel and which about 15 Mt was bituminous and anthracite, about 17 Mt Energy of Ukraine, 2006, p. 48; Metall Ukrainy, 2008b, p. 61). was subbituminous, and about 2 Mt was lignite. Given the country’s lack of major oil and gas reserves, the Government

35.2 u.s. geologicAl survey minerals yearbook—2008 Outlook Metall Ukrainy [Metals of Ukraine], 2008c, Rynok ZhRS [The iron ore market]: Metall Ukrainy, no. 7, April 1-15, 70 p. Metall Ukrainy [Metals of Ukraine], 2008d, V Avguste import zheleznoye rudi Production of metals in Ukraine is expected to decrease umenshilsya, import margantsevoye rudi uvelichilsya [In August imports of significantly in 2009 as the world economic crisis reduces iron ore decreased, imports of manganese ore increased]: Metall Ukrainy, demand in export markets and as investments in the industry are no. 19, October 1-15, 70 p. needed to help maintain competitiveness in the world market. Metall Ukrainy [Metals of Ukraine], 2009a, Eksport zhelezlrudnovo syrya v 2008 godu uvelichilsya na 5.1% [Exports of iron ore raw materials in 2008 The gas crisis that began on January 1, 2009, when Russia cut increased by 5.1%]: Metall Ukrainy, no. 2, January 16-31, 70 p. off all gas exports intended for Ukrainian consumers is likely Metall Ukrainy [Metals of Ukraine], 2009b, Import zhelezlrudnovo syrya v 2008 to put serious short-term pressure on the mineral processing godu sokratilsya na 23% [Imports of iron ore raw materials in 2008 decreased industry as it struggles to find alternative power supplies. by 23%]: Metall Ukrainy, no. 2, January 16-31, 70 p. Metall Ukrainy [Metals of Ukraine], 2009c, Rynok koksyushikhsya uglej [The Independent of the gas crisis, the price of imported gas is coking coal market]: Metall Ukrainy, no. 1, January 1-15, p. 70. expected to increase and gradually reach market prices within Ministry of Fuel and Energy of Ukraine, 2006, Energy strategy of Ukraine for the a few years, which is likely to further challenge industrial period until 2030: Ministry of Fuel and Energy of Ukraine, March 15, 129 p. producers in the long run. If coal and uranium production NJSC Naftogaz of Ukraine, 2008, National JSC Naftogaz of Ukraine reached an agreement with Open JSC Gazprom: JSC Naftogaz of Ukraine press release, increase as planned, Ukraine could reduce some of its March 13. (Accessed March 2, 2010, at http://www.naftogaz.com/www/2/ dependence on foreign fuels. nakweben.nsf/0/F929453364DE4AC2C225740B004FE23C?OpenDocument &year=2008&month=03&nt=News&.) References Cited NJSC Naftogaz of Ukraine, 2009a, Consolidated financial statements—Y ear ended 31 December 2008: JSC Naftogaz of Ukraine, August, 49 p. (Accessed March 2, 2010, at http://www.naftogaz.com/files/Zvity/ Apodaca, L.E., 2009a, Bromine: U.S. Geological Survey Mineral Commodity Consolidated_FS_2008_en.pdf.) Summaries 2009, p. 36-37. NJSC Naftogaz of Ukraine, 2009b, Statement of the Chairman of NJSC Apodaca, L.E., 2009b, Nitrogen (fixed)—Ammonia: U.S. Geological Survey Naftogaz Ukraine Oleg Dubyna: JSC Naftogaz of Ukraine press release, Mineral Commodity Summaries 2009, p. 114-115. January 3. (Accessed March 2, 2010, at http://www.naftogaz.com/www/2/ Apodaca, L.E., 2009c, Peat: U.S. Geological Survey Mineral Commodity nakweben.nsf/0/395418DBB9828845C225753300649715?OpenDocument& Summaries 2009, p. 116-117. year=2009&month=01&nt=News&.) Chernovalov, Aleksander, Gavrish, Oleg, and Noskov, Yakov, 2008, Aluminievyi NNEGC Energoatom, 2010, Mesto NAEK Energoatom na Energorynke tormoz [Aluminum break]: Kommersant Ukraina [Ukrainian Merchant], Ukrainy [The position of NNEGC Energoatom in the energy market November 4. (Accessed February 16, 2010, at http://www.kommersant.ua/ of Ukraine]: NNEGC Energoatom. (Accessed April 29, 2010, at doc.html?docId=1051945.) http://www.energoatom.kiev.ua/ru/about_nngc/nngc.) Corathers, L.A., 2009a, Manganese: U.S. Geological Survey Mineral OAO Gazprom and JSC Naftogaz of Ukraine, 2008, Joint Statement of OAO Commodity Summaries 2009, p. 100-101. Gazprom and NAK Naftogaz Ukrainy: OAO Gazprom press release, Corathers, L.A., 2009b, Silicon: U.S. Geological Survey Mineral Commodity March 3. (Accessed March 2, 2010, at http://www.gazprom.com/press/ Summaries 2009, p. 146-147. news/2008/march/article64102/.) Fenton, M.D., 2009, Iron and steel: U.S. Geological Survey Mineral Commodity Olson, D.W., 2009, Graphite (natural): U.S. Geological Survey Mineral Summaries 2009, p. 82-83. Commodity Summaries 2009, p. 70-71. Ferrexpo Plc., 2009, Annual report and accounts 2008: Ferrexpo Plc., April 9, State Statistics Committee of Ukraine, 2009, Output of basic industrial products 116 p. in 2008, by month: State Statistics Committee of Ukraine, January 16. Gambogi, Joseph, 2009a, Titanium and titanium dioxide: U.S. Geological (Accessed December 4, 2009, at http://www.ukrstat.gov.ua.) Survey Mineral Commodity Summaries 2009, p. 176-177. Ukrrudprom, 2008a, Mintopenergo likvidiruet Ukratomprom [The Ministry Gambogi, Joseph, 2009b, Titanium mineral concentrates: U.S. Geological of Energy liquidates Ukratomprom]: Ukrrudprom, May 29. (Accessed Survey Mineral Commodity Summaries 2009, p. 174-175. April 29, 2010, at http://www.ukrrudprom.com/news/sdgdsgf0254578.html.) Gambogi, Joseph, 2009c, Zirconium and hafnium: U.S. Geological Survey Ukrrudprom, 2008b, Zaporizhskiy oblsovet odobril memorandum s Mineral Commodity Summaries 2009, p. 188-189. ISD [Zapirizhia Oblast Administration approved a memorandum Jaskula, B.W., 2009, Gallium: U.S. Geological Survey Mineral Commodity with ISD]: Ukrrudprom, December 23. (Accessed April 22, 2010, at Summaries 2009, p. 60-61. http://www.ukrrudprom.ua/news/etyuet34578.html.) Johnson, Ed, and Kim, Lucian, 2008, Ukraine must end gas dispute World Energy Council, 2009, Survey of energy resources—Interim update 2009: ‘transparently,’ U.S. says: Bloomberg L.P., March 5. (Accessed World Energy Council, 88 p. March 2, 2010, at http://www.bloomberg.com/apps/news?pid=newsarchive& World Nuclear Association, 2010a, Nuclear power in Ukraine: World Nuclear sid=aGRDQtsOhyEs#.) Association, April. (Accessed April 29, 2010, at http://www.world-nuclear.org/ Jorgenson, J.D., 2009, Iron ore: U.S. Geological Survey Mineral Commodity info/inf46.html.) Summaries 2009, p. 80-81. World Nuclear Association, 2010b, World uranium mining: World Nuclear Karpenko, Georgiy, 2008, Tavricheskii GOK: Metall Ukrainy [Metals of Association, April. (Accessed April 30, 2010, at http://www.world-nuclear.org/ Ukraine], No. 9, May 1-15, 70 p. info/inf23.html?terms=production.) Kramer, D.A., 2009, Magnesium metal: U.S. Geological Survey Mineral World Steel Association, 2009, Crude steel statistics—Total 2008: World Steel Commodity Summaries 2009, p. 98-99. Association. (Accessed May 20, 2009, at http://www.worldsteel.org/ Metall Ukrainy [Metals of Ukraine], 2008a, GMK—problemy otrasli [The ?action=stats&type=steel&period=latest&month=13&year=2008.) mining and metals complex—The problems of the industry]: Metall Ukrainy , no. 18, September 16-30, 70 p. Metall Ukrainy, [Metals of Ukraine], 2008b, Investitsii v yadernyi tsikl sostavyat $2.4 mlrd. [Investment in the nuclear cycle amounts to $2.4 bln.]: Metall Ukrainy, no. 11, June 1-15, 70 p.

Ukraine—2008 35.3 TABLE 1 UKRAINE: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity 2004 2005 2006 2007 2008 METALS Alumina 1,562,170 1,632,020 1,671,620 1,700,000 e 1,670,000 e Aluminum: Primary 113,151 114,224 112,961 113,437 113,000 e Secondarye 130,000 130,000 130,000 130,000 130,000 Total 243,151 244,224 242,961 243,437 243,000 e Cadmium, metale 25 25 25 25 25 Galliume 13 r 13 r 13 r 13 r 13 Germaniume 20 20 20 20 20 Golde kilograms 500 500 500 500 500 Iron and steel: Iron ore, marketable: Gross weight 65,550,000 68,569,600 74,000,000 77,900,000 72,700,000 Fe contente 36,000,000 37,700,000 40,700,000 42,800,000 40,000,000 Metal: Pig iron 31,060,000 30,747,000 32,926,000 35,647,000 r 30,982,000 Ferroalloys: Blast furnace:e Ferromanganese 79,000 30,000 26,700 28,400 28,000 Spiegeleisen 5,000 5,000 4,450 4,730 4,700 Electric furnace: Ferromanganese 375,990 359,000 373,000 368,000 362,400 Ferronickele 60,000 60,000 90,000 90,000 95,000 Ferrosilicon 248,060 228,000 169,000 218,000 152,800 Silicomanganese 1,060,000 1,046,000 1,168,000 1,281,000 894,900 Othere 25,000 25,000 22,200 23,700 23,000 Total, blast and electric furnacese 1,853,050 1,753,000 1,850,000 2,010,000 1,560,000 Steel: Crude 38,738,000 38,636,000 42,899,000 42,830,000 37,107,000 Finished, rolled 23,200,000 22,180,000 22,387,000 24,510,000 20,493,000 Pipe 2,034,000 2,293,000 2,759,000 2,811,000 r 2,542,000 Lead, refined, secondary 15,000 e 61,400 56,300 62,000 60,000 e Magnesium metale, 2 3 2,000 2,200 2,500 2,000 Manganese: Ore, marketable: Gross weight 2,362,000 2,260,000 1,606,400 1,719,600 1,446,600 Mn contente 810,000 770,000 546,000 580,000 492,000 Nickel:e Mine output, Ni content of laterite ore 6,000 r 6,000 12,000 12,000 8,000 Ni content of ferronickel 12,000 14,000 18,000 18,000 18,800 Titanium: Ilmenite concentrate:e Gross weight 370,000 375,000 470,000 500,000 520,000 r r r r TiO2 content, 59% 217,000 222,000 276,000 294,000 306,000 e Rutile concentrate, 95% TiO2 60,000 60,000 60,000 60,000 60,000 Metal, sponge 7,497 8,397 9,997 9,745 9,930 Zirconium concentratese 35,000 35,000 35,000 35,000 35,000 INDUSTRIAL MINERALS Brominee 1,878 3 3,138 3 700 700 700 Cement 10,635,000 12,183,000 13,732,000 15,000,000 14,900,000 Clays: Ball clay -- 118,000 294,000 652,000 650,000 e Bentonitee 300,000 300,000 300,000 300,000 200,000 Kaolin 202,300 216,600 251,000 244,000 245,000 e Diamond, synthetice carats 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 Feldspar 48,800 63,930 67,313 76,305 83,420 See footnotes at end of table.

35.4 u.s. geologicAl survey minerals yearbook—2008 TABLE 1—Continued UKRAINE: PRODUCTION OF MINERAL COMMODITIES1

(Metric tons unless otherwise specified)

Commodity 2004 2005 2006 2007 2008 INDUSTRIAL MINERALS—Continued Graphite 10,960 10,400 5,800 5,800 e 5,800 e Gypsum 337,000 380,600 375,900 741,580 1,158,000 Lime thousand metric tons 5,302 5,342 5,450 5,688 5,128 Limestone do. 23,200 25,100 27,800 30,000 26,700 Nitrogen, N content of ammoniae 3,900,000 4,300,000 3 4,200,000 4,200,000 4,200,000 e e Potash, K2O equivalent 10,100 13,100 8,100 11,900 12,000 Salt 4,393,000 4,811,000 5,996,000 5,548,000 4,425,000 Soda ashe 650,000 700,000 700,000 700,000 700,000 Sulfur, nativee 136,000 139,000 133,000 135,000 135,000 Sulfuric acid 1,425,000 606,000 1,493,000 1,660,000 1,660,000 Vermiculite 62,000 64,000 65,000 65,000 e 65,000 e MINERAL FUELS AND RELATED MATERIALS Coal, raw: Anthracite thousand metric tons 18,295 16,204 13,444 13,000 e 14,000 e Bituminous do. 62,100 58,000 66,600 62,255 63,400 e Lignite do. 3,000 355 231 182 200 e Total do. 83,395 74,559 80,275 75,437 77,673 Marketable do. 59,400 60,400 61,439 58,739 59,500 Coke 18,858,000 21,999,000 19,200,000 20,143,000 19,456,000 Natural gas cubic meters 20,400,000 20,788,000 21,094,000 21,104,000 21,444,000 Peat, horticultural use and fuel use 544,000 639,000 462,000 395,000 358,000 Petroleum: Crude and gas condensate: As reported 4,179,000 4,414,000 4,506,000 4,459,000 4,239,900 Convertede 42-gallon barrels 30,400,000 r 32,100,000 r 32,800,000 r 32,400,000 r 30,800,000 Refinery products 22,000,000 18,400,000 14,384,000 13,910,000 13,900,000 e Uranium: U contente 678 678 678 678 678 r U3O8 content 800 800 800 800 830 eEstimated; estimated data are rounded to no more than three significant digits; may not add to totals shown. rRevised. do. Ditto. -- Zero. 1Table includes data available through June 2, 2010. 2Includes secondary. 3Reported figure.

Ukraine—2008 35.5 TABLE 2 UKRAINE: STRUCTURE OF THE MINERAL INDUSTRY IN 20081, 2

(Metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners3 Location or deposit names capacitye Alumina and aluminum: Alumina Nikolaev alumina refinery [United Company 20 kilometers south of 1,400,000 (UC) RUSAL] Do. Zaporozhye refinery (ZALK) [United Company Zaporizhia 245,000 (UC) RUSAL] Aluminum, primary Zaporozhye smelter (ZALK) [United Company do. 100,000 (UC) RUSAL] Coal About 165 active surface and underground About 95% of coal produced in 90,300,000 4 mines, including: , Dnipropetrovsk, and Oblasts Donbass Fuel and Energy Co. (DTEK): OAO Pavlogradugol 10 mines in Dnipropetrovsk and Donetsk Oblasts OAO Komsomolets Donbassa Mine Kirovskoe, State Enterprise Sverdlovskanthracite 5 coal mines and 3 processing plants in State Enterprise Rovenkianthracite 6 mines and 3 processing plants in Luhansk Oblast Krasnoarmeiskaya-Zapadnaya No. 1 1 mine at Krasnoarmeisk, Donetsk Oblast JSC Krasnodoncoal ( Holding LLC) 7 mines and 2 processing plants in Luhansk Oblast Approximately 28 smaller producers Donetsk, Dnipropetrovsk, Luhansk, , and Volynsk Oblasts Coke Evraz Group: : 3,520,000 OAO Dneprkoks Coking Plant Dnipropetrovsk OAO Bagleykoks Coking Plant Dniprodzerzhinsk OAO Dneprodzerzhinsk Coking Plant do. Do. Metinvest Holding LLC: OAO Avdeyevka Coke and Chemical Plant Avdeyevka, Donetsk Oblast 6,870,000 Do. OAO Azovstal , Donetsk Oblast 3,182,000 Do. OJSC ArcelorMittal Kryviy Rih Kryviy Rih, Dnipropetrovsk 3,552,000 Oblast Do. OAO Donetsk Coke Plant (Donetskoks) Donetsk, Donetsk Oblast 2,000,000 Do. Yenakievo Coke Plant Yenakievo, Donetsk Oblast NA Do. OAO Zaporozhkoks Zaporizhia NA Do. Makeevka Coke Plant Makeevka, Donetsk Oblast NA Do. Yasinovskiy Coke Plant do. NA Do. OAO Alchevsk Coking Plant [Industrial Alchevsk, Luhansk Oblast 3,600,000 Do. Union of Donbass Corp. (ISD Corp.)] Do. Coke Plant Horlivka, Donetsk Oblast 440,000 Do. Kharkov Coke Plant Kharkov NA Ferroalloys: Ferromanganese Zaporozhye plant (PrivatBank Group) Zaporizhia 100,000 Do. Nikopol ferroalloys plant Nikopol 300,000 Do. Stakhanov plant (PrivatBank Group) Luhansk Oblast NA Ferromanganese, blast furnace Kostantinovka Iron and Steel Works Konstyantynivka, Donetsk Oblast NA Do. Kramatorskiy Metal Plant "Kuibiysheva" , Donetsk Oblast NA Ferronickel OOO Pobuzhskiy Ferronickel Plant Pobuzhke, Kirovograd Oblast 100,000 Ferrosilicon Stakhanov plant (PrivatBank Group) Luhansk Oblast NA Do. Zaporozhye plant (PrivatBank Group) Zaporizhia 100,000 Silicomanganese Stakhanov plant (PrivatBank Group) Luhansk Oblast NA Do. Zaporozhye plant (PrivatBank Group) Zaporizhia 250,000 Do. Nikopol ferroalloys plant Nikopol 900,000 Gallium Nikolaev alumina refinery (UC RUSAL) 20 kilometers south of Mykolaiv 13 See footnotes at end of table.

35.6 u.s. geologicAl survey minerals yearbook—2008 TABLE 2—Continued UKRAINE: STRUCTURE OF THE MINERAL INDUSTRY IN 20081, 2

(Metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners3 Location or deposit names capacitye Graphite Zavalyevskiy graphite complex Zavalyevskiy deposit 40,000 Iron ore: Underground mining Krivorozhskiy Iron Ore Complex 4 mines in Kryvorizkyi Iron Ore 11,200,000 Basin Do. Sukha Balka (Evraz Group) 2 mines in Dnipropetrovsk Oblast 3,750,000 Do. OJSC ArcelorMittal Kryviy Rih 2 mines at Kryviy Rih 1,500,000 Do. Zaporozhye Iron Ore Complex Eksplutatsionnay Mine in 4,500,000 Zaporizhia Oblast Do. Centralniy GOK (Metinvest Holding LLC) 1 mine in Dnipropetrovsk Oblast 2,200,000 Open pit mining do. 3 mines in Dnipropetrovsk Oblast 12,000,000 Do. Severniy GOK (Metinvest Holding LLC) 2 mines in Dnipropetrovsk Oblast 30,000,000 Do. Inguletsky GOK (Metinvest Holding LLC) Ingulets mine south of Kryviy Rih 35,000,000 Do. Yuzhniy GOK (Evraz Holding, 50%; and Mine at Kryviy Rih 35,000,000 Smart Holding, 50%) Do. OJSC ArcelorMittal Kryviy Rih Yuzhniy Mine at Kryviy Rih 22,500,000 Do. Poltava GOK (Ferrexpo Plc.) Gorishne-Plavninskoye and 28,000,000 Lavrikovskoye (GPL) Mine, 15 kilometers east of Kremenchug Kaolin Prosyanovskoye GOK Dnipropetrovsk Oblast NA Lead, secondary CJSC Svinets Kostyantynivka 70,000 Magnesium Magnii concern Kalush 22,000 Magnesium, metal Zaporozhye titanium-magnesium plant Zaporizhia 10,000 Manganese: Ore, marketable Ordzhonikidze GOK (PrivatBank Group) Ordzhonikidze NA do. Marganets GOK (PrivatBank Group) Marhanets NA Metal Zaporozhye plant (PrivatBank Group) Zaporizhia 40,000 Mercury OOO Nikitrtyt Horlivka, Donetsk Oblast 300 Nickel, Ni content in FeNi Pobuzhskiy GOK, comprising three open pit Pobuzhke, Kirovograd Oblast 20,000 mines and the Pobuzhskiy Ferronickel Plant Petroleum, refined 42-gallon Alliance Oil Co. 50,200,000 barrels Do. do. Lukoil 28,600,000 Do. do. TNK-Ukraina Lisichansk 63,900,000 Do. do. Ukraine Oil Co. Drogobych, Lviv Oblast 28,600,000 Do. do. CJSC Ukrtatnafta Kremenchug 131,000,000 Do. do. do. Nadvornaja, Ivano-Frankivsk Oblast 18,400,000

Potash, K2O equivalent Khlorvinil production association, Stebnik potash Pricarpathian Region 300,000 plant Steel, crude Industrial Union of Donbass Corp. (ISD Corp.): OJSC Alchevsk Iron and Steel Works Alchevsk, Lugansk Oblast NA Do. Dneprovskiy Metallurgical Plant "Dzerzhinsky" Dniprodzerzhinsk 3,850,000 Do. Metinvest Holding LLC: Azovstal Iron and Steel Works Mariupol, Donetsk Oblast 6,400,000 Do. Yenakievo Iron and Steel Works Yenakievo, Donetsk Oblast 3,500,000 Do. OJSC ArcelorMittal Kryviy Rih Kryviy Rih, Dnipropetrovsk Oblast 7,400,000 Do. Dnepropetrovsk Metal Plant "Petrovskovo" Dnipropetrovsk 1,230,000 (DMZP) (Evraz Group S.A., 96%) Do. Makevskii Metal Plant Makeevka, Donetsk Oblast 2,450,000 Do. OJSC Ilyich Iron and Steel Works of Mariupol Mariupol 7,300,000 Do. JSC Zaporizhstal Zaporizhia 4,350,000 Do. Kramatorskiy Metal Plant "Kuibiysheva" Kramatorsk, Donetsk Oblast NA Do. Donetskstal Donetsk 1,150,000 Do. Donetsk Electrometallurgical Plant (formerly do. 1,000,000 ISTIL minimill) Do. Dneprospetsstal Zaporizhia 1,400,000 Do. OOO Elektrostal Kurakhovo, Donetsk Oblast 300,000 See footnotes at end of table. Ukraine—2008 35.7 TABLE 2—Continued UKRAINE: STRUCTURE OF THE MINERAL INDUSTRY IN 20081, 2

(Metric tons unless otherwise specified)

Major operating companies and Annual Commodity major equity owners3 Location or deposit names capacitye Titanium: Concentrate: Of which: Location: 600,000 4 Ilmenite Irshansk GOK 50 kilometers north of Zhytomr NA Do. Volnogorsk state mining-metals complex Volnogorsk, 70 kilometers west of NA Dnipropetrovsk Rutile Volnogorsk state mining-metals complex do. NA Sponge Zaporozhye titanium-magnesium plant Zaporizhia 20,000 Uranium Vostochny GOK (Ukratomprom) Ingulskaya Mine at Kirovograd 450 Do. do. Smolinskaya Mine at Smolino 600 Do. do. Hydrometallurgical concentration 1,000 plant at Zheltye Vody Zinc, secondary Ukrzinc plant Kostyantynivka 25,000 Zirconium, ore, zircon Volnogorsk state mining-metals complex Volnogorsk, 70 kilometers west of NA Dnipropetrovsk Metal and compounds physical-technical institute Kharkov Oblast NA Do. Pridneprovsk chemical plant Dnipropetrovsk Oblast NA eEstimated; estimated data are rounded to no more than three significant digits. Do., do. Ditto. NA Not available. 1Table includes data available through June 2, 2010. 2Inconsistencies in enterprise and location names may exist because both Ukrainian or Russian spellings were used for transliterations. English versions of company names are as given by official company sources (Web sites, press releases, and so forth). Ukrainian versions of location names are used wherever possible. 3GOK is the abbreviation for gorna-obogotitelniy kombinat, which translates as 'mining and beneficiation complex'. 4Capacity estimates are totals for all enterprises that produce that commodity.

35.8 u.s. geologicAl survey minerals yearbook—2008