Pokrovsk Mining sees no prospects for restart due to electricity problems

The plant, first of all, cannot work fully due to the shortage of electricity and its high cost for industry

Pokrovsk Mining and Processing Plant (Pokrovsk GOK) has no prospects of fully resuming operations due to electricity problems. Pavel Litun, the plant’s chief power engineer, said this in the company’s corporate newspaper.

«For more than a month now, the plant has been subject to electricity consumption restriction schedules. At first, it was more about evening hours. Over time, these restrictions have become more stringent. They have been applied at night, in the morning and during the day, depending on the situation. The main reason is the critical shortage of generation in our grids, their very poor technical condition due to damaged power transmission equipment. And while the power line can be restored in the shortest possible time, substations are much more difficult,» he said.

In addition, the plant cannot operate fully not only because of the electricity shortage but also because of its high cost for industrial enterprises.

«Now that all production facilities have been shut down, Pokrovske GOK consumes about 2 million kW of electricity to run drainage systems, provide local power to security posts and other workplaces, as well as to the ERC and RMC scrap procurement units. If we take the average cost of 1 kW at UAH 5 (in May it already reached UAH 5.7), we come up with a sum of UAH 10-11 million. And these funds need to be taken from somewhere. But I want to note that the cost of UAH 5.7 is far from the maximum price. We are already hearing that starting from June 1, 2024, 1 kW of electricity for industry will cost up to UAH 9,» emphasizes Pavlo Litun.

Due to the prospects of an increase in the deficit or even a complete lack of electricity supply, the company has developed a program to provide power to all departments involved in its operations.

«Of course, we are talking about the plant’s idle mode. We are not considering anything else. Realizing such not very bright prospects, our company is making every effort to provide power to its facilities. In previous years, we used backup power in the form of stoves, diesel or gasoline generators – they are still installed locally, so the power service is already checking their readiness for operation,» added the plant’s chief power engineer.

In addition, in early April, the plant began construction of a solar power plant (SPP). The project is expected to be completed by September. The SPP will have a capacity of 1 MW.

«Taking into account losses, we expect that it will produce up to 900 kW of electricity, which will replenish the plant’s overall system. Thanks to the SPP, the enterprise will be able to receive additional generation and save money,» he summarizes.

As GMK Center reported earlier, Pokrovsk GOK suspended full operations in early November 2023. The main reasons for the suspension were the economic downturn in demand and the cost of manganese-containing products, as well as the instability of energy supply. The decline in demand was due to the shutdown of the plant’s main consumers, Ukrainian ferroalloy plants.

Currently, ferroalloy plants continue to be idle, and the situation with energy supply is deteriorating.