OGKH sells concentrate domestically at a higher price than in China.

by Editor • 22.09.2015 • 0 Comments

On September 14, following a tender, Sumykhimprom PJSC signed a contract with the United Mining and Chemical Company state enterprise for the supply of ilmenite concentrate. The contract value was UAH 284,33 million, according to the State Procurement Bulletin.

130 tons of concentrate were ordered, amounting to 2187 hryvnias, or almost $100 per ton. Interestingly, in May of this year, Sumykhimprom and OGKhK had already signed a contract for 333,16 million hryvnias, but it was cancelled. At that time, the concentrate was valued at 2566 hryvnias, or approximately $120 per ton. The contract was then terminated.

It's worth noting that even the May price didn't exceed the export price for concentrate from OGKH. It's also worth noting that two Chinese companies received concentrate from OGKH at almost half the price: $61-69 per ton. OGKH has not yet commented on this matter.

It should also be recalled that the Minister of Economic Development, Aivaras Abromavicius, intends to dismiss the head of the United Mining and Chemical Company, due to the large number of questions that arise regarding him.

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