The Cabinet of Ministers of Ukraine has transferred a state stake of 51 percent in Zaporizhia Titanium and Magnesium Combine LLC, created jointly with Dmytro Firtash's Group DF, to United Mining and Chemical Company state enterprise.
This is stipulated in cabinet resolution No. 287-r of April 4 which was published on April 6.
The cabinet said that the state enterprise does not have the right to transfer the fulfillment of orders to other persons, the contract of the agency is signed for up to three years, and the state enterprise is fulfilling the functions of a representative under the agency contract free of charge.
According to the resolution, the proposal was made by the State Property Fund of Ukraine and was agreed with the Economic Development and Trade Ministry of Ukraine. The contract of the agency will be signed with the head of United Mining and Chemical Company.
Zaporizhia Titanium and Magnesium Combine is the only Ukrainian and European producer of titanium sponge. The production capacity of the plant is 20,000 tonnes per year, but due to the deterioration of productive assets the company is only able to produce 10,000 tonnes per year.
The state owns a controlling stake in Zaporizhia Titanium and Magnesium Combine LLC, and Group DF owns 49 percent.
United Mining and Chemical Company (initially Vilnohirsk state mining and metallurgical plant) was created by the Industrial Policy Ministry in 2009. It comprises Vilnohirsk mining and metallurgical plant (Dnipropetrovsk region) and Irshansk mining and processing plant (Zhytomyr region).
In 2012, private joint-stock company Crimea Titan, part of Dmytro Firtash’s Group DF, agreed on the leasing of Vilnohirsk and Irshansk enterprises until September 2014. On Aug. 6, 2104, the cabinet decided to not prolong the leasing agreements.
