Metinvest, the largest Ukrainian mining and metallurgical holding, in January-March this year reduced the production of total iron ore concentrate (IRC) by 21% compared to the same period last year and by 20% quarter-on-quarter to 6.128 million tons.
According to a press release from parent company Metinvest B.V. on operating results for the first quarter of 2022, the decrease in concentrate output was due to the start of full-scale hostilities on the territory of Ukraine, which, in turn, led to logistical restrictions against the backdrop of blocking Black Sea ports, as well as a sharp decrease in intragroup consumption by Mariupol plants.
According to the results of January-March of the current year, the group reduced the production of marketable iron ore products by 16% compared to the same period last year – to 4.067 million tons, which corresponded to the output in the previous quarter.
During this period, Metinvest reduced the production of pellets by 35% compared to the same period last year, to 1.281 million tons, mainly due to a sharp decrease in intra-group consumption, optimization of the portfolio of orders at the Northern Mining and Processing Plant. However, compared to the previous quarter, their output increased by 34% due to a scheduled overhaul of the roasting machine at the Central Mining and Processing Plant in the 4th quarter of 2021.
Salable concentrate production decreased by 10% to 2.786 million tons, mainly due to lower production at Inguletsky GOK.
In the first quarter of 2022, the total production of coking coal concentrate decreased by 14% to 1.276 million tons as a result of a decrease in production by the Pokrovskaya Coal Group due to a decrease in the number of personnel and disruption of supply chains after the outbreak of hostilities in Ukraine. By the first quarter of 2021, growth was 29% due to the consolidation of the Pokrovskaya Coal Group.
The production of coal concentrate at the mines of the United Coal Company (USA) in Q1-2022 decreased by 85 thousand tons compared to Q1-2021 due to the deterioration of geological conditions.
As reported, according to the results of 2021, Metinvest increased the total production of iron ore concentrate (IRO) by 3% compared to the previous year – up to 31.341 million tons, pellets by 18% – up to 5.811 million tons and the total production of coking coal concentrate – by 92 %, up to 5.542 million tons.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore and coal mining and coke production to the production of semi-finished products and finished products from steel, pipes and coils, as well as the production of other high value-added products. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA, has a sales network covering all key global markets.
“Metinvest”, the largest Ukrainian mining and metallurgical holding, in January-March of this year, reduced steel production by 8% compared to the same period last year, and by 25% compared to the previous quarter – to 1.962 million tons, n pig iron – by 15% and 31%, to 1.828 million tons, the total production of coke – by 33% and 28%, respectively, to 783 thousand tons.
According to a press release from parent company Metinvest B.V. on operating results for the first quarter of 2022, in January-March of this year, the group reduced the total production of iron ore concentrate (IOR) by 3% compared to the same period last year and by 10% quarter-on-quarter to 2.786 million tons, pellets by 35% and increased by 34%, respectively – up to 1.281 million tons, the total production of coking coal concentrate – increased by 29% and reduced by 14%, respectively, to 1.276 million tons.
As reported, according to the results of 2021, Metinvest increased steel production by 15% compared to 2020 – up to 9.533 million tons, pig iron – also by 15%, up to 9.709 million tons, but reduced the total production of coke by 5% – to 4.551 million tons. In 2021, Metinvest increased the total production of iron ore concentrate (IRO) by 3% compared to the previous year – up to 31.341 million tons, pellets by 18% – up to 5.811 million tons and the total production of coking coal concentrate – by 92%, up to 5.542 million tons.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore and coal mining and coke production to the production of semi-finished products and finished products from steel, pipes and coils, as well as the production of other high value-added products. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA, has a sales network covering all key global markets.
Metinvest’s main shareholders are the SCM group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
Metinvest Holding LLC is the management company of the Metinvest group.
Metinvest mining and metallurgical group will continue the implementation of investment projects in metallurgy, in particular, at Kametstal plant, created at the facilities of Dniprovsky Metallurgical Plant (Kamyanske, Dnipropetrovsk region).
“In March, Kametstal was the only metal producer in the country. In April, we managed to withdraw from hot conservation and resume production at Zaporizhstal. Metallurgy was one of the key industries in Ukraine in peacetime, and during the war it became a significant source of filling budgets at all levels, which is extremely important for our economy, so we will continue to implement investment projects in production, because the restoration of our country is ahead,” CEO of Metinvest Yuriy Ryzhenkov said during a visit to Kametstal steel plant.
According to him, it will be necessary to rebuild the infrastructure of Ukraine – bridges, roads, buildings.
“For all this, metal is very necessary. And it is precisely in this that the role of Kametstal cannot be overestimated,” he said.
Earlier, the general director of Kametstal, Dmytro Lippa, reported that the enterprise was working and is working with 100% capacity utilization.
“We are provided with orders, there are problems with logistics, but we are solving them,” he said.
Metinvest is a vertically integrated mining group of companies that manages assets in every link of the production chain from iron ore and coal mining and coke production to the production of semi-finished goods and finished products from steel, pipes and coils, as well as the production of other high value-added goods. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the United States, has a sales network covering all key global markets.
Since the beginning of the war, Metinvest Mining and Metallurgical Group has allocated UAH 1.176 billion to solve social problems of people, as well as to help the military.
Starting February 24, the group has largely restructured its operations, according to a company press release. By the decision of shareholders Rinat Akhmetov and Vadim Novinsky, in addition to supporting the economic stability of Ukraine, the company threw all its efforts into helping Ukraine and Ukrainians.
At the same time, humanitarian support for the population in several key areas has become a 24/7 job for many Metinvest employees. Thus, together with DTEK (the SCM energy business), Metinvest became one of the founders of the Saving Lives humanitarian project. The work of the project is coordinated with the Rinat Akhmetov and Vadim Novinsky Foundations.
The main objective of the humanitarian initiative was the purchase and delivery of humanitarian goods, primarily food products, from Europe to Ukraine. In two months, about 30,000 people received assistance. Thanks to charitable contributions from almost 70 companies from around the world, 1,644 tonnes of food, essential goods, hygiene products and medicines were transferred to the affected areas.
In close cooperation with the Ministry of Health, a medical assistance program was launched in Zaporizhia, Kryvy Rih, Kamianske, Pokrovsk and Avdiyivka, which combines the purchase and transfer of thousands of sets of medicines, as well as the purchase of medical equipment for hospitals and outpatient clinics. The company also donated 150 tonnes of oxygen to COVID-19 patients.
Mining and metallurgical group “Metinvest” Rinat Akhmetov and Vadim Novinsky intends to employ most of the 13 thousand metallurgists and repairmen evacuated from Mariupol.
“Metinvest Group has decided to keep the payment in full to all employees for March, despite the fact that the enterprises of Mariupol did not work a day. To everyone who left for the territory controlled by Ukraine, the company keeps payments in the amount of 2/3 of the salary and offers vacancies in Metinvest career centers in Zaporozhye, Kryvyi Rih, Kamensky and Pokrovsk,” the company said on Tuesday.
It is noted that the decision was approved for the priority employment of immigrants from Mariupol at the company’s enterprises – about 2,000 vacancies have been prepared. Negotiations are ongoing with partners to deploy more possible jobs. We are talking about municipal utilities of cities and various humanitarian missions.
It is also indicated that the company is working to address the priority needs of employees from Mariupol: everyone who traveled to the cities where the Metinvest group operates can be temporarily resettled at facilities prepared for this and receive humanitarian assistance: food kits, clothes, accessories for children and basic household items. In addition, company employees can count on medical and psychological support.
For those who find jobs, payments in the amount of UAH 10,000 from the Metinvest group are also provided as assistance in setting up a life.
It is also stated that not only Mariupol metallurgical plants, but also enterprises in Avdiivka have been stopped at present.
“We are launching production in Zaporozhye, but it is not working to its full capacity. Volumes have been reduced in Krivoy Rog, Kamensky and Pokrovsk. The Metinvest group is trying with all its might to maintain production in order to pay wages to those who work and support those who find themselves in difficulty from -for Russia’s attack on Ukraine, as well as helping Ukraine bring victory closer,” the company’s information emphasizes.
Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, in European countries. The main shareholders of Metinvest are the SCM group (71.25%) of Rinat Akhmetov and Smart Holding (23.75%) of Vadim Novinsky, who jointly manage the company.
LLC “Zaporozhye Casting and Mechanical Plant” (ZLMZ), created on the basis of the production workshops of the department of the chief mechanic of PJSC “Zaporizhstal”, which is part of the Metinvest group, has resumed its work.
According to the company’s information on Sunday, earlier the Metinvest group decided to withdraw the main equipment of ZLMZ from the conservation regime, while before that only duty teams came to the workplace to maintain the equipment in proper condition.
“We have every reason to resume work: the military situation in Zaporozhye is under control, we have received both standard orders and unique requests from customers, so now we are making every effort to fulfill them,” the words of the acting are quoted in the message. Director General of ZLMZ Igor Dolgozvezda.
It is specified that the plant has resumed the work of the main divisions: a mechanical workshop, a metal structure workshop and a section for the production of shaped castings. Currently, the Zaporizhia Casting and Mechanical Plant is planning to produce and restore parts for Metinvest enterprises – Zaporizhstal, Kametstal, Metinvest Pokrovskugol and mining and processing plants of the Metinvest group. The company is also mastering the production of new types of products – spare parts for mining and lifting vehicles.
Yury Dmitriev, the head of the ZLMZ machine shop, pointed out that after the information about the resumption of production, the workers immediately expressed a desire to return to work, and some employees even began to return from abroad.
“Before the war, we worked on a day/night/48 or 5/2 schedule. Now our workers are ready to work around the clock to load the equipment to the maximum and produce the maximum product,” Dmitriev said.
Work shifts for employees have been adjusted to reflect the curfew. The enterprise provides centralized transportation of workers by corporate transport.
According to the decision of the company, the priority right to employment for open vacancies of scarce professions at ZLMZ is granted to specialists evacuated from Mariupol to Zaporozhye.
It is indicated that the company is gaining pre-war momentum and even working on new technologies so as not to depend on foreign supplies.
The press service also reports that ZLMZ employees, as volunteers, joined the work of the Center for the Coordination of the Humanitarian Mission of Metinvest in Zaporozhye from the first days of its creation, taking part in the reception, sorting and formation of cargo with humanitarian aid and coordinating the reception of internally displaced persons at social facilities companies in Zaporozhye.
LLC “Zaporozhye Casting and Mechanical Plant” (ZLMZ) was established on the basis of the foundry and mechanical shops, as well as the shop of metal structures of the plant “Zaporizhstal” in mid-2016. At the same time, the steel plant remains the main partner of the plant, which is a diversified enterprise with a closed production cycle.
ZLMZ specializes in the production of castings from cast iron, as well as from alloyed, low-alloyed and high-alloyed steels, metal structures and metal parts. The company produces a wide range of products, which includes molds for metallurgical plants, building structures, spare parts and prefabricated assemblies. The main consumers of the plant’s products are enterprises of the mining and metallurgical and other industries.
The plant is part of the Metinvest group, the largest mining and metallurgical holding in Ukraine. The main shareholders of Metinvest are the SCM group (71.25%) of Rinat Akhmetov and Smart Holding (23.75%) of Vadim Novinsky, who jointly manage the company.
