Metinvest set up a company to manage Ukrainian coal assets

The Metinvest Group has set up Metinvest Pokrovskugol to manage operational and administrative changes at enterprises of the Pokrovske Colliery Group, according to Metinvest’s press release.

The newly created company will coordinate all coal production divisions and consolidate non-production services of enterprises of the Pokrovske Colliery Group, including Pokrovske Coal Company and Sviato-Varvarynska Beneficiation Plant. More than 400 employees of these enterprises have already been transferred to the company.

The creation of Metinvest Pokrovskugol will eliminate the overlapping of administrative functions and will enable managing finance, procurements, personnel, transport, security, continuous improvement and information technologies.

Andrey Akulich has been appointed as Director General of Metinvest Pokrovskugol. He formerly served as Deputy Director General for Integration at Donetskstal.

“The creation of Metinvest Pokrovskugol is a key stage of the process of integration into the Metinvest Group, aimed at increasing the efficiency of both a particular production point and the entire value chain. It will enable the Group to further strengthen vertical integration and improve the quality of final products,” said Yuriy Ryzhenkov, CEO of the Metinvest Group.

As reported earlier, in March 2021, Metinvest claimed a purchase of a controlling stake in the Pokrovske Colliery Group.

Among the new assets of Metinvest are several enterprises of the Pokrovske Colliery Group, including Pokrovske Coal Company and Sviato-Varvarynska Beneficiation Plant. These enterprises produce run-of-mine coal, enrich it and sell it as coal concentrate.

Pokrovske Coal Company produces high-quality K grade coal used for the production of blast-furnace coke. 6.2 million tons of run-of-mine coal was produced in 2020, 55% up from 2018. Coal concentrate production reached 3.2 million tons, 39% up from 2018.

Sviato-Varvarynska Beneficiation Plant is one of the largest in Ukraine. Its design beneficiation capacity is around 8 million tons of run-of-mine coking coal per annum.

Metinvest Holding LLC is the managing company of the Metinvest Group. The major shareholders of Metinvest are its co-managing companies SKM Group (71.24%) and Smart Holding (23.76%).

In 2020, Metinvest B.V. cut its revenues by 10% to $7.6 billion compared to 2019. Over the period from January to September 2020, the Group’s EBITDA grew by 16% to 1.37 billion compared to the same period a year earlier.