Metinvest, Ukraine's largest steel producer, has suspended operations at the Pokrovsk coking coal mine in Donetsk Oblast due to worsening security conditions and power outages, the company announced on Jan. 14.
Located 10 kilometers (6 miles) west of Pokrovsk, the mine is one of Eastern Europe’s largest and Ukraine’s sole producer of coking coal, a key component in steelmaking—Ukraine's second-largest export after agriculture.
The mine remains under Ukrainian control, and Metinvest is evacuating employees and their families.
"The suspension of operations is a necessary step to preserve lives during these challenging times. We believe in Ukraine's victory and are prepared to resume operations and rebuild Pokrovsk after the Russian invasion is repelled," said Metinvest CEO Yuriy Ryzhenkov.
To sustain steel production at its plants in Dnipropetrovsk and Zaporizhzhia oblasts, Metinvest has developed a contingency plan. This includes sourcing coking coal from the U.S.-based United Coal Company, utilizing existing reserves, and securing additional supplies from third-party vendors.
Pokrovsk, a crucial logistics hub for Ukrainian forces, has been the focus of fierce fighting as Russia intensifies its offensive in Donetsk Oblast.
Steel exports generated nearly $2 billion in the first eight months of 2024, with production projected to reach 7.5 million metric tons by year-end. Plans to increase output to over 10 million tons in 2025 are now threatened, as the loss of Pokrovsk could slash annual production to 2-3 million tons, according to Reuters.
Kateryna Denisova
(Updated: )
