Metinvest Mining and Metallurgical Group announces the suspension of Pokrovsk Coal Group’s operations due to the changing situation on the frontline, electricity shortages and the deteriorating security situation, the company said in a stock exchange announcement on Tuesday.
“In connection with the suspension of Pokrovske Coal Group’s operations,Metinvest‘s management has developed a contingency plan to ensure the supply of the necessary raw materials (coal and coke) for steel production at the Group’s metallurgical assets (Kametstal and Zaporizhstal JV). The measures include the replacement of Ukrainian raw materials with coking coal from the US-based United Coal Company (part of Metinvest Group), the use of increased coal reserves, and additional supplies of coal and coke from third-party suppliers,” the statement said.
According to the press release, the full impact on the Group of the shutdown of the asset, whose production sites remain in the government-controlled territory of Ukraine, is currently being assessed.
At the same time, it is emphasized that the safety of employees is a priority for Metinvest, so the company facilitated the evacuation of Pokrovske Coal Group employees and their families. All employees who are not involved in the work stoppage process are offered paid retraining and employment at Metinvest’s assets in Zaporizhzhia, Kamianske and Kryvyi Rih. The evacuated employees are provided with financial assistance (lifting allowances, compensation for housing rent), free accommodation in hostels, and assistance for children (enrollment in kindergartens and schools).
“Pokrovskoye Coal Group is the energy heart of the Ukrainian steel industry and used to provide most of the export revenues to the Ukrainian budget. However, amid the daily deterioration of the situation, we cannot risk the safety of thousands of employees, as well as the lives of their families and children. Therefore, the suspension of the plant’s operations is a necessary step to help save lives. We believe in the victory of Ukraine, we believe in the Ukrainian Armed Forces and we are ready to resume the work of Pokrovske Coal Group and Pokrovsk itself after repelling the Russian invasion,” said Yuriy Ryzhenkov, CEO of the Group.
“Metinvest is a vertically integrated group of steel and mining companies. Its businesses are located in Ukraine, in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions, as well as in Europe and the United States.
The major shareholders of Metinvest B.V. are SCM Group (71.24%) and Smart Holding Group (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
