Metinvest Suspends Operations at Pokrovske Coal in Response to Security Crisis
In a decisive move prompted by the deteriorating security situation, Metinvest, one of Ukraine's largest industrial groups, has announced the suspension of operations at its Pokrovske Coal mine. The decision follows a significant escalation in the conflict, with the frontline conditions becoming increasingly volatile, compounded by power supply disruptions and growing risks to employee safety.
Located in the Donetsk region, Pokrovske Coal is a vital asset for Metinvest, providing a significant portion of the coking coal required for the company’s steel production. However, with the situation worsening, the company has prioritized the safety of its workforce, making the difficult decision to halt operations.
Employee Safety Comes First: Evacuations and Support Initiatives
The security of employees and their families has been Metinvest's primary concern. As part of the response, the company has facilitated the evacuation of Pokrovske Coal’s employees and their families from the conflict zone. To ensure their well-being during this challenging period, Metinvest is offering comprehensive support packages, which include financial assistance for relocation and housing. Employees have access to free accommodation in dormitories, as well as support for their children, including placement in kindergartens and schools.
For those employees who are not directly involved in the suspension process, Metinvest is offering paid retraining opportunities to help them transition into roles at other Metinvest assets located in safer areas such as Zaporizhzhia, Kamianske, and Kryvyi Rih. This proactive approach is designed to maintain employment while reducing the impact of the suspension on the workforce.
Securing the Supply of Raw Materials for Steel Production
While operations at Pokrovske Coal are temporarily suspended, Metinvest’s management is focused on securing the continued supply of essential raw materials, particularly coal and coke, for its metallurgical plants, including Kamet Steel and the Zaporizhstal joint venture. To mitigate the disruption, the company is increasing its supply of coking coal from the United Coal Company, a Metinvest-owned operation in the US. Additionally, Metinvest is utilizing coal stocks that have been recently accumulated and arranging for additional coal supplies from third-party suppliers to keep its steel production running smoothly.
This strategy is part of Metinvest’s broader emergency action plan to ensure that its steelmaking operations do not face significant delays, despite the challenging circumstances. The company is also actively assessing the full impact of the suspension on its broader operations and is working to adjust its supply chain accordingly.
A Crucial Asset for Ukraine's Economy
Pokrovske Coal holds significant importance not only for Metinvest but also for the Ukrainian economy as a whole. The mine is one of the country’s key producers of coking coal, an essential raw material for steel production. Moreover, Pokrovske Coal contributes a substantial share of Ukraine’s export revenues, which play a crucial role in the national budget.
Yuriy Ryzhenkov, CEO of Metinvest, expressed the company’s firm belief in Ukraine’s resilience and its eventual victory. “Pokrovske Coal is the energy heart of Ukrainian metallurgy,” he said, highlighting the vital role the asset plays in both the steel industry and the economy. He emphasized that, despite the current suspension, the company is determined to resume operations at the mine once the conflict is resolved and the region is secured. “We are prepared to rebuild Pokrovsk after the Russian invasion is repelled,” Ryzhenkov added.
Looking Ahead: Recovery and Rebuilding
Metinvest’s decision to suspend operations at Pokrovske Coal is driven by an urgent need to protect human lives in the face of a rapidly evolving security threat. As the company continues to navigate the ongoing crisis, its focus remains on supporting its employees, maintaining production at other facilities, and ensuring Ukraine’s steel industry can recover and thrive once the conflict is over.
The company’s commitment to reopening Pokrovske Coal as soon as it is safe to do so underscores its belief in the future of Ukraine’s industrial sector. Metinvest is prepared to play a key role in rebuilding the nation’s economy, contributing to recovery efforts and helping Ukraine regain its position as a strong player in the global steel market.
The suspension of Pokrovske Coal’s operations represents a significant, albeit temporary, shift for Metinvest, but it is one that prioritizes the well-being of its workforce and the long-term health of the company’s operations. Through strategic adjustments and unwavering support for its employees, Metinvest is laying the groundwork for a strong recovery once peace is restored in the region.
