Search feedback | subscribe | polls | site map | search
Main PageRegions of UkraineVinnitsyaThe investment attractiveness
print
Overview News The investment attractiveness

the investment attractiveness

Investment prospects for the extractive industry of Vinnitsa oblast

Socio-economic development of the region largely depends on available natural resources and its known reserves of minerals as well as further development of the mining industry itself.

The oblast's location at the convergence of two geological features (the Ukrainian Crystalline Massif and the eastern edge of the Podillya Plate) create the conditions for the wide range of minerals in this area. The oblast has 425 deposits of 15 minerals, of which about 200 are currently being mined. The most important for the economy are deposits of primary kaolin (4 deposits), construction materials minerals such as brick-tile raw materials (161), construction stones (84), sawable stone (28), limestone (10), and mineral water (8).

In Vinnytsya oblast, they extract (in terms of total extraction in Ukraine) primary kaolin (13.59%), limestone for the sugar industry (5.15%), construction sand (2.11%), construction stone (5.72%), brick-tiles raw materials (9.65%), sawable stones (6.17%), facing granite (1.2%), and mineral groundwater (13.64%).

Construction materials use are the mainstay of the oblast's minerals. Deposits of construction-grade stones comprise 84% of deposits of construction materials registered by the government. At the moment, 32 deposits have being mined with remaining reserves of 321,666,000 m3 (7.38% of the total national reserve). This allows mining companies to fully meet the oblast's demand in rough and broken stone.

Future development plans concerning the Ukrainian highway system envision the construction of three new roads crisscrossing Vinnytsya oblast. Construction will require large amounts of high quality, extra firm broken and rough stone with a certain kind of flakiness. Known deposits (either currently being explored or in reserve) indicate that these materials can be found within the oblast in the needed quantities.

In one instance, the deposits of granite are located just 50 km from the proposed roads. By exploiting them, less time and expense will be needed. Some of the most attractive sites for investment are in Demydivske (Zhmerynka rayon), Pysarivske (Kalyniv rayon), Malynivske (Lityn rayon), Hopchytske (Pohrebyshe rayon), and Kalnytske (Illinets rayon).

Over the last several years, the oblast has been producing nearly 100 million pieces of ceramic bricks. They can all be classified as regular construction bricks (М-75 to М-100). However, these bricks are out of date. Current market demand is for the production of facing bricks, regular but light (hollow), and firm bricks (М-200 and over) as well as the production of tiles. The oblast has raw materials for such production. Vendychany-ІІ clay deposits have been found in the southeastern part of the oblast. The size of the deposit is 2.5 mln m3. This deposit has not been mined. The Vendychany-ІІ clay is identical to the clay of the Vendychany deposit, which is one of the best deposits in Ukraine already in use by a local brick plant. In addition to bricks, the clay deposit is also used for the production of haydite. Geologically speaking, haydite is better than clays when used in the production of bricks. The reserve of haydite are estimated at 3.9 mln m3, while clays for production of bricks are 11.1 mln m3, and sand stands at 0.5 mln m3. After updating the quality of regular bricks and ceramic blocks that have been produced since the 1960s, the production of facing tiles as well as tiles of dark red color virtually guarantee quick payback of invested funds. Furthermore, a surplus of labor, a developed industrial infrastructure, and a high demand on these products create conditions for stable production.

Pliable clays that are similar to Vendychany clays were found among minerals at Klembivskiy (Yampil rayon) and Dmytrashkiv-Trudovskiy (Pishany rayon) with deposits amounting to 0.6 and 3.3 mln m3, respectively. There are also preliminary findings in Volodivetskiy (Chernivsti rayon). These clays are all suitable for producing bricks, hollow ceramic blocks, and fa?ade facing tiles.

Highly pliable neogene clays useful for facing tiles were found in the central part of the oblast at the Novopryluky deposit near Turbov (1.5 mln m3) and the Holubivskiy (Zhmerynka rayon) deposit also holds good raw materials for bricks. Clays at the Rivske and Tartakske deposits have been found useful for cement production and also deserve attention. These reserve deposits (3.3 and 4.8 mln tons, respectively) are both located near Zhmerynka. The clays are located at a depth ranging from 2-6 meters and run as deep as 22 meters below that.

In Ukraine, Vinnytsya oblast has one of the largest reserves of sawable limestone, a cheap, ecologically clean, and useful construction material. Deposits have been found where one can create blocks through cut-and-cover mining and which can produce a new type of sawable stone. Chalk-like limestone and gaize-like minerals have some potential as well.

Hlukhovets Ore Mining and Processing Enterprise produces about 70,000 tons of kaolin concentrate, which meets four percent of the Western European market demand. At the same time, in the oblast there have been found four deposits of primary kaolin-two of them are the biggest and the best not only in Ukraine, but also in Europe.

The Bakhtyn deposit of fluorite (biggest in Ukraine) should also be noted. Production of fluorite concentrates, 120,000 tons of which is needed in Ukraine, including 100,000 tons for metallurgy, would significantly reduce dependence on imported domestic metallurgy.

In Ukraine, the best stores of tripoli powder and the richest deposit of hyalite are in Mohyliv-Podilskiy rayon. After geological research is done, these deposits are likely to become raw materials for creating new types of products like filter materials.

Deposits of phosphate-glauconitic ores and phosphate chalk can be used for producing local phosphoric fertilizers and ameliorants.
back
top


For investors: new entry
Novokahovskyi Lime-Sand Brick Plant

Purposes of company: Investments
Company description:

Market Overview:  Construction volume is increasing 20-25% annually, creating an increased demand for high quality façade bricks. The industrial capacity of façade bricks is estimated at 200 million bricks per year. In 2006, a construction boom is expected in southern Ukraine, where the plant is located. The product is used mainly by construction companies and private companies.

Project Overview:

  • Using KSE-400 (Germany)
  • Equipment supplier offers trainings for the buyer’s staff
  • Can produce 30 million bricks per year including high quality hollow façade bricks, ordinary bricks, molded bricks, white and colored bricks

Competitive Advantages:

  • Production of lime-sand bricks is considerably more energy efficient than the production of ceramic bricks. Moreover, the project envisions the reconstruction of one of the two pit-type 50-ton lime-burning kilns; using coal, automatic blending, loading, and burning will save on gas
  • Plant produces its own lime; a sand-pit is located close to the plant
  • No high quality lime-sand hollow bricks are produced in southern Ukraine
  • Due to the considerable decrease in the weight of the bricks, delivery and transportation becomes much easier; bricks can be transported by auto, railway (via the plant’s rail track), or by water (a river port is 8 km away)
    Investment Project Progress:  Market research has been conducted

Key Financials:

  • Total Investment - € 1.5 mln
  • Investment Needed - € 1.5 mln
  • Payoff period - 5 years

Branch: Construction materials
see more


Purposes of company: Investments
Company description:   
Branch: Construction materials
see more


For Buyers: new entry


Purposes of company: Export
Company description:  
Branch: Construction materials
see more
«Венбест»

Purposes of company: Distribution
Branch: Furniture
see more
Development of this web-portal has become possible under support provided by BIZPRO Project, funded by USAID.
The individual opinions published in the materials on the web-site do not necessarily coincide with views and opinions of BIZPRO and USAID.