Metinvest replaces Ukrainian coal with supplies from the US after Pokrovske Group’s shutdown

Metinvest announces the suspension of operations at Pokrovske Coal due to the evolving frontline conditions, power supply shortages and the deteriorating security situation. This decision is related to the priority of protecting the lives of employees who were evacuated with their families, the company said in a statement.

For those not involved in the suspension process, the Group is offering paid retraining opportunities and employment at other Metinvest assets in Zaporizhzhia, Kamianske and Kryvyi Rih. Evacuated employees are being provided with financial assistance (such as relocation and rent compensation), free accommodation in dormitories, and support for children (placement in kindergartens and schools).

Pokrovske Coal Group was a key source of raw materials for the Ukrainian steel industry, but the escalation of hostilities has made its operations impossible. Metinvest’s management is implementing an emergency action plan to ensure the supply of essential raw materials (coal and coke) for steel production. These measures include increasing the supply of coking coal from the Group’s United Coal Company in the US, utilising recently accumulated coal stocks while arranging additional supplies of raw materials from third-party suppliers.

?Pokrovske Coal is the energy heart of Ukrainian metallurgy, providing a significant share of export revenues to Ukraine’s budget. However, faced with a deteriorating security situation, we cannot risk the lives of thousands of employees and their families. The suspension of operations is a necessary step to preserve lives during these challenging times. We believe in Ukraine’s victory, in the strength of our armed forces, and we are prepared to resume operations at Pokrovske Coal and rebuild Pokrovsk after the russian invasion is repelled,? said Yuriy Ryzhenkov, CEO of Metinvest.

As GMK Center reported earlier, in January-September 2024, Metinvest reduced its coal concentrate production by 5% year-on-year – to 3.22 million tons. In the third quarter, coal concentrate (total) production increased by 14% q/q – to 1.13 million tons. The main factor was a 17% q/q increase in production volumes at Pokrovske Coal Group to 658 thousand tons.