Metinvest to invest UAH 1.4 billion in gas and solar power plants in 2025

Metinvest Group plans to invest UAH 1.4 billion in its own gas and solar power plants in 2025. This will increase energy independence and reduce electricity costs.

Two gas-fired power units will be built at Central and Northern Minings and a solar power plant will be built at Central Mining, Igor Tonev, Executive Director of the United Mining and Processing Plant (UMPP), said at the Exporters Summit 2025 organized by Forbes Ukraine.

In total, Metinvest plans to invest UAH 5.7 billion in the development of Ukrainian Minings in 2025. The bulk of the funds will be used to support production and capital repairs. The company is also launching a major strategic project to thicken waste and enrich ore worth UAH 9 billion. It is critically important for the continuation of Northern Mining’s operations after 2027.

Due to the war and the loss of Azovstal’s Mariupol and Ilyich Iron and Steel Works, the company is facing difficulties in selling iron ore. In 2022, production utilization dropped to 30% of the pre-war level, and in 2023 it slightly increased after exports to China resumed. Last year, the company managed to reach 50% of pre-war volumes, but further growth remains in question due to the war and tariff restrictions.

Despite the challenges, the company continues to optimize. The merger of three mining and processing plants in 2023 helped reduce management costs and increase efficiency. At the same time, Metinvest is calling on the authorities to adopt a more transparent tariff policy, as rising prices for electricity, gas and rail transportation are having a negative impact on the industry. In particular, Igor Tonev reminded that last year the group was forced to shut down Ingulets Minings because of high electricity and gas tariffs.

Power plant construction projects are already at the final stage of financing approval with Ukrainian banks. They are expected to significantly reduce the company’s energy dependence, which is especially important in times of war and energy market instability.

According to Yuriy Ryzhenkov, CEO of Metinvest, the recovery of Ukraine’s war-torn steel industry depends on international security guarantees. The company cannot implement large-scale investment projects without reliable conditions for long-term planning.