On December 12, 2024, Metinvest B.V., the parent company of an international steel and mining conglomerate, announced the suspension of its coal operations at the Pishchane facility near Pokrovsk, in Ukraine's Donetsk region. The decision comes in response to escalating tensions on the frontline, coupled with increased shelling in the area, making it unsafe for continued production.
The Pishchane facility houses the vertical shaft of Pokrovsk Mine No. 3 and its administrative complex. Metinvest has evacuated key personnel and their families to ensure their safety amidst the growing threat of conflict. This facility was critical, accounting for approximately half of Metinvest's coal production in Ukraine. Despite the suspension, other key facilities of the company remain operational.
Metinvest is closely collaborating with the Pokrovsk Military Administration and the Ukrainian Armed Forces to monitor the situation and evaluate the safety of the surrounding infrastructure. The company’s response will continue to depend on developments at the front, with decisions regarding the reopening of the mine being made in due course.
The suspension is expected to have significant ramifications for Ukraine's steel industry. As Oleksandr Kalenkov, president of Ukrmetallurgprom, pointed out, if coking coal production in Pokrovsk halts entirely, steel production in Ukraine could plummet to 2-3 million metric tons, far below the country’s potential output of 7.5-10 million metric tons. This reduction would force local steelmakers to rely on imported raw materials, diminishing their competitiveness and raising production costs.
In the third quarter of 2024, Metinvest reported a 14% increase in coal concentrate production, reaching 1.13 million metric tons. Of this, Pokrovsk Coal Group contributed 658,000 metric tons. Despite a year-on-year decline of 5%, Metinvest remains a key player in Ukraine’s steel sector.
The suspension of operations at Pishchane adds to the already challenging conditions in Ukraine’s steel industry, as steelmakers grapple with rising costs, diminished coal supplies, and the broader impact of the ongoing conflict.
