Metinvest suspends part of its coal-fired capacity due to safety concerns

On December 12, 2024, Metinvest B.V., the parent company of an international group of steel and mining companies, announced the suspension of its coal facility in the village of Pishchane, located near Pokrovsk (Donetsk region). The reason is the escalation of the situation at the frontline and increased shelling.

The facility houses the vertical shaft of Pokrovsk Mine No. 3 and the administrative complex. The company evacuated its key personnel and their families to ensure their safety.

The mine accounted for about half of the company’s total coal production in Ukraine. Other key facilities continue to operate.

The company is working closely with the Pokrovsk Military Administration and the Ukrainian Armed Forces to monitor the situation around the town and infrastructure. Further decisions on the operation of industrial facilities will be made depending on the situation at the front.

“Metinvest is currently assessing the impact of the shutdown of the Pishchane mine on its operations.

As Oleksandr Kalenkov, president of Ukrmetallurgprom, previously noted in a Reuters article, if coking coal production in Pokrovsk is completely halted, steel production in Ukraine will drop to 2-3 million tons from a possible 7.5-10 million tons. Domestic steelmakers will have to import raw materials, which will significantly worsen their competitiveness and increase production costs.

As GMK Center reported earlier, in the third quarter of 2024, Metinvest increased its coal concentrate production by 14% q/q – to 1.13 million tons. The main factor was a 17% q/q increase in production volumes at Pokrovsk Coal Group, up to 658 thousand tons. In January-September, the production of the respective products is estimated at 3.22 million tons (-5% y/y).