Business news from Ukraine

Business news from Ukraine

Svyato-Varvarinskaya plant produced 1.5 mln tons of coal concentrate

Svyato-Varvarinskaya Enrichment Plant (SVEP), a part of Metinvest Group and part of Metinvest Pokrovskugol, has produced 1.5 million tons of coal concentrate since the beginning of this year.
According to Metinvest Pokrovskugol, despite the war, the team is meeting all its targets. Since the beginning of the year, the plant has produced 1.5 million tons of high-quality concentrate.
In addition, the company remains among the world’s leading concentrators and the best in terms of efficiency amid the worst of the crisis.
As reported earlier, ZFP enriches raw coking coal produced by Ukraine’s largest coking coal producer, Pokrovske Mine Administration (Donetsk Oblast). Production did not stop during the war.
Earlier, it was planned to mine 5.352 million tons of coal in 2024, of which 2.802 million tons of coal concentrate would be produced.
“Metinvest has established Metinvest Pokrovskugol, which manages the enterprises of the Pokrovsk Coal Group (Pokrovskoye). The company includes, among others, Pokrovskoye Mine Administration and ZZFV.
Svyato-Varvarinskaya Enrichment Plant is a premium coal concentrate producer in Ukraine. Its production capacity is about 8 million tons of raw coking coal per year with the ability to enrich five different classes of coal. Pokrovskoye coal is processed by the coal mining unit.

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“Svyato-Varvarinskaya plant” produced 193 thousand tons of coal concentrate

Svyato-Varvarinskaya coal preparation plant (SVP), a part of Metinvest Group and part of Metinvest Pokrovskugol, met its target for April this year, producing 193 thousand tons of coal concentrate.

According to Metinvest Pokrovskugol, the plant enriched raw coking coal produced by Ukraine’s largest coking coal producer, Pokrovskoye Mine Administration (Donetsk Oblast).

It is emphasized that production did not stop for a single day during the war.

At the same time, employees of Pokrovskoye Mine Management completed the preparation of 2.4 km of transportation route to ensure the output of rock mass. The main feature of the new conveyor chain is full automation, and the presence of video cameras allows us to monitor the operation of the conveyor line remotely.

The 1st southern longwall of block 10 is currently being installed, with a total sinking length of 290 meters, of which more than 100 meters have already been prepared.

In addition, the 11th unit is under construction.

As reported, Pokrovskoye Mine produced 1 million 238.597 thousand tons of coking coal in January-March this year.

In 2024, it is planned to produce 5.352 million tons of coal, of which 2.802 million tons of coal concentrate will be produced.

“Metinvest has established Metinvest Pokrovskugol, which manages the enterprises of the Pokrovske Coal Group (Pokrovskoye). The company includes, among others, Pokrovskoye Mine Administration and Svyato-Varvarinskaya Concentrator.

Svyato-Varvarinskaya Enrichment Plant is a premium coal concentrate producer in Ukraine. The company’s production capacity is about 8 million tons of raw coking coal per year with the ability to enrich five different classes of coal. OFSV processes all the coal from Pokrovskoye Mine.

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“Metinvest” increased pellets by 48%, coal concentrate – by 17%

According to the results of work in January-September of this year, “Metinvest” reduced the total production of iron ore concentrate (IRC) by 23% compared to the same period last year – to 7.513 million tons, increased the production of pellets by 48% – to 3.989 million tons, the total output of coke of coal concentrate increased by 17% to 4.318 million tons.

According to a press release from parent company Metinvest B.V. on the results of operations for the third quarter and nine months of 2023 on Wednesday, in the third quarter of 2023 the output of the total SAM increased by 13% compared to the previous quarter – to 2.766 million tons – due to increased production at all three GZK (Northern GZK, InGZK and TsGZK).

The production of commercial iron ore products increased by 3% – up to 2.180 million tons, while almost the entire volume of these products was produced with a high iron content. Due to the change in the order portfolio in favor of pellets, their production increased by 7% – to 1.434 million tons, while the production of commercial concentrate decreased by 5% – to 746 thousand tons.

In the nine months of 2023, the production of total air defense systems decreased by 23% due to the start of full-scale military operations on the territory of Ukraine at the end of February 2022. As a result, the volume of production of commercial iron ore products decreased by 12% – to 6.220 million tons – due to a decrease in the production of commercial concentrate by 49%, to 2.231 million tons. At the same time, the increase in the production of commodity pellets by 48% occurred due to the reorientation of the order portfolio. Almost the entire volume of marketable iron ore products was produced with a high iron content.

In the third quarter of 2023, the group’s coal concentrate production decreased by 19% compared to the previous quarter – to 1.275 million tons. The main factor was a 36% decrease in production volumes at United Coal Company (USA) mines – to 443,000 tons – due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines. The production of coal concentrate in the Pokrovsky Coal Group (Ukraine) decreased by 7% – to 832 thousand tons – due to a decrease in production due to the deterioration of geological conditions.

In the first nine months of 2023, the group’s coal concentrate output increased by 17%, mainly due to an increase in production in the Pokrovsky Coal Group – by 33%, to 2.426 million tons, as well as an improvement in the quality characteristics of Ukrainian coking coal.

Previously, the financial director of the group, Yulia Dankova, explained that as a result of the war, “Metinvest” lost control over two large plants in Mariupol and suspended production in Avdiivka. These and other challenges that the company continues to overcome have forced the business to restructure in order to survive.

So, first of all, the company provided the opportunity for its foreign enterprises to operate separately, since the vertically integrated structure was broken. Before the war, the Mariupol factories supplied semi-finished products to their rolling mills abroad, and coal concentrate went to Ukraine from the USA. Currently, the assets of “Metinvest” in Italy, Great Britain and the USA operate as independent enterprises. Coal mines in the US have reoriented product sales to domestic and export markets, and rolling mills are buying semi-finished products on the open market.

She also stated that now the group’s industrial enterprises are loaded at 65-75% capacity, and GZK – at 35-40%.

As reported, “Metinvest” according to the results of January-March of this year reduced the total production of iron ore concentrate (IRC) by 62% compared to the same period last year – to 2.306 million tons, pellets by 6% – to 1.214 million tons, the total output of coking coal of concentrate increased by 14% to 1.461 million tons. At the same time, the output of total iron ore concentrate more than doubled compared to the previous quarter – up to 2.306 million tons.

In the first half of 2023, the group reduced the production of SAMs by 46% compared to the same period last year – to 4.746 million tons, increased pellets by 37% – to 2.555 million tons, the total output of coking coal concentrate increased by 25%, to 3.043 million tons. The output of marketable iron ore products decreased by 35%, to 4.041 million tons.

According to the results of 2022, “Metinvest” reduced the production of total iron ore concentrate by 66% compared to the previous year – to 10.712 million tons, marketable iron ore products by 55% – to 7.903 million tons, in particular the volume of marketable concentrate – by 60%, to 4.718 million tons , and the volume of commercial pellets – by 45%, up to 3.185 million tons. In 2022, the group’s coal concentrate production decreased by 11% to 4.959 million tons.

“Metinvest” consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA.

The main shareholders of “Metinvest” are “SCM” group (71.24%) and “Smart-holding” (23.76%), which jointly manage the company.

“Metinvest Holding” LLC is the managing company of the “Metinvest” group.

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