Black Iron Inc. announced in August that it had selected Fluor Transworld Services, a subsidiary of Fluor Corp., as Engineering, Procurement and Construction Management (EPCM) contractor for its Shymanivske iron ore project in Kryviy Rih, Ukraine, and has released initial work activities for the project.
A computer-generated 3-D illustration of the Shymanivske iron ore project, showing site layout.
Fluor, which has extensive experience operating in the former Soviet Union and eastern Europe with existing offices in Russia and Poland, plans to establish a project office in Ukraine. Fluor said these offices will work in conjunction with its head office in Greenville, South Carolina, USA, to execute the contract to world-class standards while remaining sensitive to Ukraine's cultural features and regulatory standards.
Black Iron announced in mid-November 2012 the completion of its NI 43-101 compliant bankable feasibility study on the Shymanivske project. The BFS outlines an operation producing 9.2 million metric tons per year (mt/y) of high-grade 68% iron ore concentrate, requiring a capital investment of $1.1 billion. The project is surrounded by five other operating mines, including ArcelorMittal's iron ore complex. The company said it believes that existing infrastructure, including access to power, rail and port facilities, coupled with locally available skilled labor, will allow for a relatively quick development timeline to production.
The project is reported to contain 646 million mt of measured and indicated mineral resources, consisting of 355 million mt of measured mineral resources grading 32% total iron and 19.5% magnetic iron, and indicated mineral resources of 291 million mt grading 31.1% total iron and 17.9% magnetic iron, using a cut-off grade of 10% magnetic iron. Additionally, the project contains 188 million mt of inferred mineral resources. The company also holds an exploration permit for the adjacent Zelenivske project, which it intends to further explore to determine its potential.