Shymanivske Iron Ore Project, Dnepropetrovsk, Ukraine

Shymanivske iron ore deposit

Black Iron, through its subsidiary Shymanivske Steel, is developing the Shymanivske iron ore deposit in the KrivBass iron ore basin in the Dnepropetrovsk region of Ukraine. The nation is the world's sixth biggest iron ore producer and the biggest iron ore producer in the Commonwealth of Independent States (CIS).

The Central Government of Ukraine granted the Mining Allotment Certificate for the iron ore project in August 2014. The plant is anticipated to be commissioned during the fourth quarter of 2016 and is expected to start revenue generation in the first quarter of 2017.

The project is estimated to produce 9.9 million tonne (Mt) of high-grade, 68% iron ore concentrate a year during its estimated mine life of 14 years. It is anticipated to create more than 8,000 construction jobs and 2,000 long-term operating jobs.

Shymanivske iron ore deposit location, geology and mineralisation

The integrated mining, smelting and refining facilities operated by KGHM Polska Miedz SA (KGHM) ranked as the world's sixth largest refined copper supplier.

The Shymanivske iron ore deposit is located approximately 330km southeast of Kiev in Central Ukraine, within the KrivBass (Krivoy Rog Basin) iron ore mining district. Most of the iron ore production in Ukraine is from the Krivbass basin.

The Krivoy Rog basin is a paleoproterozoic synclinorium structure in the Archean Ukrainian Shield. The basin lies alongside the western edge of the Middle Dnieper block of the Shield adjacent to the Kirovograd Block.

Most of the mineralisation at Shymanivske is the oxide facies iron formation (OIF) or oxide facies banded iron formation. The iron formation is made up of magnetite, magnetite-haematite, and haematite varieties, the most economically-significant being the unoxidised magnetite and magnetite-hematite varieties.

The high-grade ore was formed by the leaching of quartz and oxidation of iron silicate within the banded iron formations. It consists mainly of iron oxides and hydroxides, which form column-like and lens-like segregations and bodies within the banded iron formation units.

Iron ore reserves at Shymanivske

"The Shymanivske beneficiation plant has a nominal capacity to process 35Mtpa of iron ore."

The Shymanivske iron ore project is estimated to contain proven and probable ore reserves of 449Mt grading 31.1% Fe.

Mining and processing of ore at Shymanivske project

Open pit mining at Shymanivske will encompass drilling and blasting followed by loading and hauling.

The major mining fleet will include Caterpillar 777G haul trucks, a Caterpillar 6018 type hydraulic face shovel, Caterpillar 795F AC type haul trucks, three Caterpillar 7495 electric rope shovels, and a Caterpillar 6060 type hydraulic face shovel.

The Shymanivske beneficiation plant has a nominal capacity to process 35Mtpa of iron ore and to produce 9.9Mtpa of iron ore concentrate. The ore will be subject to four stages of processing, including dry processing, wet processing, concentrate and tailings thickening, and concentrate dewatering, storage and handling.

The run of mine (ROM) ore will be hauled by trucks and delivered to the crushing and stockpile (dry processing) area, which will consist of the primary and secondary crushing and screening circuits.

The crushed material will be grinded in high-pressure grinding rolls and screened. The screen oversize material will be returned to HPGR feed bins, while the undersize material will be transported to four HPGR screen undersize pump boxes from where the fine ore will be re-pulped and fed to the wet processing area.

In the wet processing stage, the material will undergo wet cobbing, primary and secondary grinding, followed by finishing and sulphide flotation. The sulphide flotation concentrate will be thickened and filtered, resulting in the production of a concentrate filter cake.

The iron ore filter cake will be loaded onto rail cars and transported to the TransInvestServis terminal at Yuzhny port in the Odessa region, for export.

Infrastructure facilities at Shymanivske iron ore project

"The Shymanivske beneficiation plant has a nominal capacity to process 35Mtpa of iron ore."

Power for the Shymvanivske project is proposed to be supplied from the existing 150kV Gornaya substation owned by Dneprovskaya ElectroEnergetisheskaya Systema. The substation is located approximately 30km south-east of the Shymvanivske site.

Potable water will be sourced from the Karachunovskoe Reservoir, located to the north of the plant, through a 7km-long water pipeline.

Contractors involved with the Shymanivske mine development

Fluor Transworld Services, a subsidiary of Fluor Corporation, was awarded the engineering, procurement, and construction management (EPCM) contract for the Shymanivske iron ore project.

In January 2012, Black Iron retained WorleyParsons Services Canada (WorleyParsons) for completing the feasibility study.

The bankable feasibility study (BFS) is prepared with support from Lycopodium Minerals Canada, Soutex Mineral & Metallurgical Processing Consultants, Watts, Griffis and McOuat, Consulting Geologists and Engineers of Toronto, and P&E Mining Consultants.