The Cabinet of Ministers of Ukraine has transferred a state stake of 51% 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 Monday.

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.

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%.