“Metinvest, Ukraine’s largest mining and metals holding, increased its total production of iron ore concentrate (IOC) by 63% year-on-year to 12.239 million tonnes in January-September this year, and pellets by 15% to 4.570 million tonnes, but reduced its total output of coking coal concentrate by 25% to 3.220 million tonnes.
According to the operating report of the parent company Metinvest B.V. on Monday, in March-July 2024, Ukraine experienced power supply restrictions due to Russian shelling and high demand for imported electricity. Since August, the situation has stabilized, but the unfavorable conditions on the iron ore market have led to a decline in production.
The Group’s mining and processing plants continued to operate at varying levels of capacity utilization, taking into account the availability of electricity, its cost, market prices for iron ore products and other factors to ensure efficient production. As a result, in Q3 2024, total iron ore concentrate production decreased by 17% quarter-on-quarter to 3.347 million tonnes; production of saleable iron ore products decreased by 15% to 3.231 million tonnes, including iron ore products by 16% to 1.854 million tonnes, and saleable pellets by 14% to 1.377 million tonnes.
Amid the unblocking of Ukrainian Black Sea ports from August 2023 and an increase in the order book for pellets, total iron ore production increased by 63% to 12.239 million tonnes in the first nine months of 2024 compared to the same period of the previous year. At the same time, the output of commercial iron ore products increased by 84% to 11.446 million tons, including a 3.1-fold increase in the production of commercial iron ore products to 6.876 million tons and 15% increase in commercial pellets to 4.570 million tons.
Since February 2024, Russian troops have concentrated their efforts on several fronts, including the Pokrovske direction, located near the Pokrovske coal group. Russian troops captured a number of towns and villages in the region and shifted the front line. Intense fighting and massive shelling continue in the area. Management is closely monitoring the situation and is taking all possible measures to minimize any potential negative consequences for the group, the statement said.
In the third quarter of 2024, the group’s production of coal concentrate increased by 14% quarter-on-quarter to 1.135 million tons. The main factor was a 17% increase in production volumes at Pokrovske Coal Group to 658 thousand tons. Despite the intensification of military operations in the Pokrovske area, production increased due to the commissioning of an additional longwall, which increased mining productivity and improved the quality characteristics of Ukrainian coking coal.
United Coal Company’s (USA) coal concentrate production increased by 9% quarter-on-quarter to 477 thousand tons due to increased production at some Affinity mines, mainly on the back of growing demand for coking coal.
For 9M2024, the Group’s coal concentrate production decreased by 25% year-on-year to 3.220 million tonnes, in particular due to a 23% decrease in production at Pokrovske Coal Group to 1.860 million tonnes, mainly as a result of optimization of mining operations due to changes in mining and geological conditions; at United Coal Company by 28% to 1.360 million tonnes due to the cessation of production at Carter Roag mines and a decrease in production at some Wellmore mines.
“Metinvest comprises mining and steel production facilities located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
“Metinvest, Ukraine’s largest mining and metals holding, increased steel production by 5% year-on-year to 1.610 million tonnes and pig iron production by 2% to 1.367 million tonnes in January-September this year, but reduced total coke production by 11% to 846 thousand tonnes.
According to the press release of the parent company Metinvest B.V. on the operating results for 9M2024, due to the start of Russia’s large-scale military aggression against Ukraine on February 24, 2022, the group’s Ukrainian enterprises (except for those located in Mariupol and Avdiivka) continue to operate at different levels of utilization due to security, staff availability, electricity supply, as well as logistical and economic factors.
At the same time, in the third quarter of 2024, pig iron and steel production at Kametstal remained almost at the level of the previous quarter and amounted to 483 thousand tons and 568 thousand tons, respectively.
In the first nine months of 2024, steel production increased due to an increase in the order book for steel products.
In the third quarter, production of finished products decreased by 19% quarter-on-quarter to 491 thousand tons. In particular, flat products production decreased by 29% to 185 thousand tonnes, which was driven by several factors: first, the irregular operation of Ferriera Valider (Italy), which depends on marginal orders amid unfavorable European market conditions; and second, the scheduled overhaul of the rolling mills in Italy and the UK in August.
Production of long products decreased by 11% to 306 thousand tons due to the scheduled shutdown of Promet Steel (Bulgaria) for overhaul in August.
In January-September 2024, production of finished products decreased by 3% compared to the same period in 2023, to 1.678 million tons. In particular, flat products production decreased by 14% to 729 thousand tonnes over the nine months due to unfavorable conditions in the European market, which resulted in the absence of marginal orders for hot-rolled coils and a decrease in the order book for hot-rolled plates. At the same time, production of galvanized cold-rolled coils increased by 65% as Unisteel’s 4th inductor in Ukraine resumed operations after it was shut down for overhaul in Q2 last year.
Production of long products increased by 8% to 949 thousand tons due to an increase in the order book for Kametstal and Promet Steel products.
In the third quarter of 2024, coke production remained at the level of the previous quarter and amounted to 282 thousand tons.
In 9M2024, coke production decreased by 11% year-on-year due to the shutdown of some coking chambers at Kametstal’s coke oven battery No. 1 in early 2024.
“Metinvest comprises mining and steel production facilities located in Ukraine, Europe and the United States. Its major shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Group’s Zaporizhzhia-based steel and mining enterprises, Zaporizhstal, Zaporozhogneupor, Zaporozhkoks and Zaporizhzhia Foundry and Mechanical Plant (ZLMZ), increased their payments to budgets of all levels by 35% year-on-year in January-September this year, totaling more than UAH 2.1 billion in taxes and fees.
According to the group’s press release on Friday, the most significant payments in terms of volume are the unified social tax and the single personal income tax. A significant share of deductions is also accounted for by the payment of environmental and land taxes and military fees.
“Metinvest Group’s enterprises remain among the largest taxpayers in Zaporizhzhia. In the first nine months of this year, Metinvest’s steelmakers paid almost UAH 700 million to the local budget, a quarter more than last year. Taxes are the basis of the public sector and the foundation for sustainable development of the frontline region. That is why, despite all the difficulties of wartime, our enterprises remain a reliable pillar of Zaporizhzhia,” said Taras Shevchenko, acting CEO of Zaporizhstal.
At the same time, the company’s enterprises in the region systematically implement socially important projects to reintegrate war veterans and support their families, help vulnerable groups of the population, assist in eliminating the consequences of shelling and restore destroyed infrastructure.
As reported earlier, including associates and joint ventures, Metinvest Group increased its tax payments to the Ukrainian budget by 38% to over UAH 15 billion in the first nine months of 2024. Since the beginning of the full-scale invasion, Metinvest has allocated UAH 7.5 billion to help Ukraine and its citizens, including UAH 4 billion for the needs of the army as part of Rinat Akhmetov’s Steel Front military initiative. The Group remains a reliable support for the country in its fight against the enemy.
In 2023, Metinvest’s Zaporizhzhia enterprises paid more than UAH 2.1 billion to the budgets of all levels, including more than UAH 818 million to local budgets. At the same time, under martial law, they waived tax benefits worth more than UAH 350 million in favor of the state.
Taking into account its associated companies and joint ventures, Metinvest paid UAH 14.6 billion in taxes and fees to the budgets of all levels in Ukraine in 2023. Since the beginning of the full-scale war, the Group has allocated UAH 4.8 billion to help Ukraine and its citizens, including more than UAH 2.5 billion for the needs of the army.
In 2022, Metinvest’s Zaporizhzhia enterprises paid about UAH 3.4 billion to budgets of all levels, including almost UAH 820 million to local budgets last year.
“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are widely known and in demand in the domestic market and in many countries around the world. “Zaporizhstal is in the process of being integrated into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group has built about 600 steel bunkers and command posts for the Armed Forces of Ukraine (AFU) and other units as part of Rinat Akhmetov’s Steel Front initiative.
Metinvest’s Chief Operating Officer Oleksandr Myronenko told the American magazine Newsweek that out of the 600 bunkers, about 480 were used to create “hideouts.” Another 120 bunkers were used to make 20 steel command posts, of which about 14 are already in operation and the rest have been delivered to the teams preparing to use them.
The remaining four command posts will be handed over to the National Guard after production is completed. One more will go to the Kraken unit, which is part of the Main Intelligence Directorate.
It takes about a week to build a “hideout”. The six bunkers can be connected into a more complex structure to form a steel command post.
According to Myronenko, the bunkers are designed to provide minimal comfort to the military near the front line. The 20 command posts can accommodate unit commanders, store weapons or provide sleeping quarters for the military.
The bunkers were used to build fortifications along Ukraine’s defense lines near the city of Pokrovsk, Donetsk Oblast.
“Metinvest is a vertically integrated group of steel and mining companies. The Group’s enterprises are located primarily in Donetsk, Luhansk, Zaporizhzhia and Dnipropetrovs’k regions. The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it. Metinvest Holding LLC is the management company of Metinvest Group.
In January-September this year, Metinvest Mining and Metallurgical Group, including its associates and joint ventures, increased its payments to the budgets of all levels in Ukraine by 38% year-on-year to UAH 15.2 billion.
According to the company’s press release on Tuesday, Metinvest remains a pillar of the country’s economy amid the full-scale war.
Among the largest payments is the fee for subsoil use, which increased 2.8 times compared to the first and third quarters of 2023, to UAH 4.2 billion. The Group also increased its unified social tax payments by 16% to UAH 2.8 billion. In addition, Metinvest paid UAH 2.5 billion in personal income tax to the budget, up 11% compared to the first three quarters of 2023.
Land payments in January-September 2024 increased by 6% year-on-year to UAH 948 million, and environmental tax by 21% to UAH 543 million. At the same time, income tax payments decreased by 32% to UAH 1.9 billion.
“In a time of war, paying taxes is critical to supporting the Ukrainian economy. The main task of our company is to strengthen the country’s defense capabilities by all means available: to be a reliable employer, investor, manufacturer of steel products for the frontline and supplier of ammunition and equipment to the Armed Forces. Only by working together can we create a solid foundation for Ukraine’s victory and ensure a peaceful future for Ukrainians,” said Yuriy Ryzhenkov, CEO of Metinvest.
As reported earlier, Metinvest increased its tax payments to the state budget by one and a half times to UAH 10 billion in the first half of 2024. In 2023, the company paid UAH 14.6 billion to the state budget.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
Metinvest Mining and Metallurgical Group’s consolidated revenue in the first half of 2024 amounted to $4.319 billion, up 22% to the first half of 2023, this result is mainly due to a 63% increase in sales to $1.847 billion of the mining segment due to the easing of logistical restrictions for Ukrainian exports and increased demand for pellets.
“The Black Sea corridor has enabled the sale of iron ore products to China… External revenues of the steel and mining segments grew by 2% and 63% year-on-year respectively, with the steel segment accounting for 57% and the mining segment 43% of total revenues,” the company said in a report Friday evening.
According to it, adjusted EBITDA increased to $650 million, up 33% due to improved performance in both segments, with the metals segment contributing 25% and the mining segment 75%.
Total debt and net debt decreased by 12% and 4%, respectively, to $1.740 billion and $1.284 billion. It is noted that the group managed to repay more than $500 million of debt from the start of full-scale invasion until the end of June 2024.
