Production results
In 2020, the total volume of processed ore at PFP amounted to 1.396 million tons (103.1% compared to 2019), of which 73.7 thousand tons are raw ferronickel (99.0% compared to previous year) and 14.7 thousand tons are nickel (103.7% compared to previous year). In the 4th quarter of 2020, planned overhauls of the ore-thermal furnace No. 2 were carried out. The repairs, excluding shutdown and re-heating, took 78 days and were finished on 19.01.21. The repair of tubular rotating furnace No.3 lasted100 days and were finished on 08.02.21.
In 2020, UAH 101.1 million was allocated for major repairs of the main technological equipment. The planned cost of improvements to the main technological equipment (in particular, tubular rotating furnace No. 2, which is projected to take 50 days) is UAH 172.7 million in 2021.
The planned volume of processed ore for 2021 is 1.486 million tons of ferronickel; 83.4 thousand tonsof nickel.
Financial results
In 2020 the company showed a positive financial result: profits amounted to UAH 3.4 million.
During this reporting period, the plant paid UAH 125.4 million in taxes to the Ukrainian government, which amounts to 119.0% compared to last year. This includes UAH 60.6 million in social security tax (113.9% compared to last year) and UAH 47.4 million of payroll tax (111.2% compared to last year).
In 2020 wages were increased twice – in January by 10% and in August by 5%. Taking into account the requirements of the current legislation, additional payments were made to achieve the minimum wage level of UAH 4,723, and since September of UAH 5,000.
In 2020 the average salary was UAH 12,011, which is 12.7% higher than in 2019 and 3.6% higher than average wages in Ukraine. Since January 2021 wages have increased by another 5%.
Ecology, social support, corporate governance systems (ESG)
Ecology
In 2017, as part of the Sustainable Business Development Plan, PFP investors approved a program for the company to reduce the environmental impact of production, setting a goal to increase the level of clean-up from emissions to 99.9%, which meets European standards. At the same time, the plant began a long-term project of reconstruction of the third stage of gas treatment equipment on tubular rotating furnaces No.1 and No.2. In 2018 the first stage of construction (UAH 48.1 million) was completed. The transfer of gas-cleaning TP-1 to a temporary scheme, with the installation of smoke exhauster and transference of gas pipes into the smoke pipe. whichwill enable the above-mentioned actions without stopping the main production process. In 2019 PFP purchased a standby smoke exhauster and carried out construction works. In 2020 construction and installation works were executed for the smoke exhaust and the sock filter, which amounted to UAH 8.4 million. The total cost (the cost of the equipment and completed works between 2018 and2020) was UAH 67.2 million. The start of the first line of gas treatment equipment is scheduled for the end of this year.
Investments in maintenance of production capacity (acquisition of equipment, machinery, construction, etc.) amounted to UAH 24.1 million in 2020. UAH 0.8 million was invested in environmental protection programs.
Social support
One of the main goals of the sustainable business development program for PFP is to improve the overall quality of education for residents of the surrounding areas and employees of the plant.
In 2020 PFP expanded its training and retraining programme, as well as updated projects aimed at extracurricular education of high school students and computer literacy of both schoolchildren and teachers. The number of employees who were trained and retrained has also increased. In 2020, 141 people entered into a new profession after the training course; 210 people upgraded their qualifications and underwent retraining. Three people are now studying at the university on a full-time basis and 10 people are on part-time study (in 2019 it was 1 and 4 people respectively).
In 2020 the cost of training for PFP employees amounted to UAH 494.2 thousand (149.0% compared to last year), including UAH 178.8 thousand for higher education and for the retraining of employees – UAH 315.4 thousand. For the first half of 2021, UAH 346.6 thousand is planned for staff training, and for the whole year UAH 685.2 thousand.
Moreover, a scholarship program is being implemented in the field of education, which, in cooperation with the Salzburg International Festival, was established in 2016 for talented young people living in the Kirovograd region. An advanced and expanded program @creative.fellowship talent showcase is aimed at helping young people acquire skills that in the future will give them an advantage in finding a job or developing their own businesses.
In autumn 2020, PFP launched an interactive project “PICH” aimed at introducing teenagers to job opportunities in the mining industry, and to increase the number of applicants who will choose technical or specialized disciplines in the future.
The total cost of social projects in Pobuzhske as well as village maintenance amounted to UAH 4.6 million in 2020 (102.9% compared to last year). PFP spent UAH 5.4 million on sponsorship, cultural events and health and rehabilitation programs for PFP employees (83.4% compared to last year); the plan for the first half of 2021 is UAH 3.9 million, and for the full year is UAH 7.6 million.
Corporate management systems
In 2020, PFP underwent a certification audit to meet three standards: ISO 9001:2015 (introduction and application of the quality management system in accordance with the requirements of the above standard), ISO 45001:2018 (health and safety management system) and ISO 14001: 2015 (environmental management system). The audit was conducted by representatives of DEKRA Certification GmbH within the period of 05.10.2020 to 07.10.2020.
It is noteworthy that ISO 45001:2018 is a fairly new certification system that prevents occupational injuries and occupational diseases, as well as ensures the availability of safe and healthy work places.