2024-12-13 00:32:19 :
(Bloomberg) — Ukraine’s largest steelmaker Metinvest BV has halted operations at its coal production site near Pokrovsk in the Donetsk region as the town became the site of some of the fiercest fighting with Russian forces in recent months. center.
The site, which includes Pokrovske Colliery’s No. 3 vertical mine and an administrative complex, produces about half of Metinvest’s total coal mining in Ukraine, the company said in a statement on Thursday. Key personnel and their families have evacuated the area.
Other Metinvest facilities in the area continue to operate and the company, as well as civilian and military authorities, are monitoring the situation. The impact of the halt in coal production is being assessed, the statement added.
READ: Russian troops enter mining town, Kyiv defends east
The fighting in and around the area is part of a fierce Russian offensive as Ukrainian forces struggle to stop advances on the front lines. The Kremlin aims to seize strategic Donetsk settlements such as Pokrovsk and key hubs such as Kramatorsk and Slavyansk.
The mine accounted for more than a third of the company’s EBITDA in the first half of this year, said Dennis Sakva, an analyst at Kyiv-based investment bank Dragon Capital. Metinvest may consider importing coal at higher prices to fill potential gaps, he added.
“All metallurgical industries in Ukraine that use blast furnaces depend on this coal,” Sakva said.
Ukraine’s steel production fell to 6.2 million tons last year from more than 21 million tons before the Russian invasion. The industry supplies the country’s armed forces, but much of its output is exported, with the EU being its largest market.
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