Metinvest achieves full self-sufficiency in coking coal
After the purchase of the Pokrovsk Coal Group, which includes the Pokrovskoe Mine Administration and the Svyato-Varvarinskaya Concentrating Plant, Metinvest will be fully provided with high-quality coking coal of its own production. Yuri Ryzhenkov, CEO of Metinvest, spoke about this in the comments to the acquisition of assets.
“This is an important acquisition for us. Over the past several years, the Group has experienced a constant shortage of coking coal. Now we have achieved complete self-sufficiency in these raw materials, which makes our vertical integration even stronger, ”Ryzhenkov noted.
Recall that Metinvest BV, the parent company of an international vertically integrated mining and metallurgical group of companies, acquired an additional shareholding in Ukraine's largest coking coal producer, thereby increasing the effective ownership of the group to the control level.
The acquired assets include several enterprises, the key ones of which are the Pokrovskoye mine administration and the Svyato-Varvarinskaya concentration plant. Together, these enterprises produce raw coal, enrich it and then sell it in the form of coal concentrate. They are located on the border of Dnepropetrovsk and Donetsk regions in close proximity to the group's coke-chemicals. All acquired assets are located in the territory controlled by Ukraine.
The Pokrovskoye Mine Administration produces high-quality K grade coal used for the production of metallurgical coke. As of January 1, 2019, the mineral resources and reserves of the Pokrovskoye mine administration according to the JORC method amounted to 248 million tons and 151 million tons, respectively, which is enough to ensure production for at least 30 years.
Svyato-Varvara Concentration Plant is one of the largest enrichment enterprises in Ukraine. The design capacity of beneficiation is about 8 million tons of raw coking coal per year.
In 2020, the production of run-of-mine coal of the Pokrovskaya Coal Group amounted to 6.2 million tons, which is 55% more than in 2018, and the production of coal concentrate - 3.2 million tons, which is 39% more than in 2018.