The mining and metallurgical group "Metinvest" announces the suspension of operations at the Pokrovsk Coal Group due to changes in the front line situation, a shortage of electricity, and worsening security conditions, as stated in the company's stock exchange announcement on Tuesday.
"In connection with the suspension of the Pokrovsk Coal Group's activities, the management of "Metinvest" has developed an emergency action plan to ensure the supply of necessary raw materials (coal, coke) for steel production at the Group's metallurgical assets ("KAMETSTAL" and the joint venture "Zaporizhstal"). The measures include substituting Ukrainian raw materials with coking coal from the American United Coal Company (part of the "Metinvest" Group), utilizing increased coal reserves, and securing additional supplies of coal and coke from third-party suppliers," the information notes.
According to a press release, an assessment of the overall impact on the group from the suspension of operations at the asset, which remains in territory controlled by Ukraine, is currently underway.
At the same time, it is emphasized that the safety of employees is a priority for "Metinvest," which is why the company facilitated the evacuation of employees from the Pokrovsk Coal Group and their families. All employees not involved in the suspension processes are given the opportunity to undergo paid retraining and find employment at "Metinvest" assets in Zaporizhzhia, Kamianske, and Kryvyi Rih. Evacuated employees are provided with financial assistance (relocation assistance, housing rent compensation), free accommodation in dormitories, and support for children (placement in kindergartens and schools).
"The Pokrovsk Coal Group is the energy heart of Ukrainian metallurgy, providing a significant portion of export revenues to the Ukrainian budget. However, under the conditions of daily escalation of the situation, we cannot risk the safety of our thousands of employees, as well as the lives of their families and children. Therefore, the suspension of operations is a necessary step to preserve human lives. We believe in Ukraine's victory, we believe in the Armed Forces of Ukraine, and we are ready to resume operations at the Pokrovsk Coal Group and in Pokrovsk after repelling the Russian invasion," noted the group's CEO, Yuriy Ryzhenkov.
"Metinvest" is a vertically integrated group of mining and metallurgical enterprises. Its facilities are located in Ukraine - in the Donetsk, Luhansk, Zaporizhzhia, and Dnipropetrovsk regions, as well as in European countries and the USA.
The main shareholders of Metinvest B.V. are the "SCM" group (71.24%) and the "Smart Holding" group (23.76%), which jointly manage the company. LLC "Metinvest Holding" is the managing company of the "Metinvest" group.