The first ship with coking coal from the USA, chartered by Metinvest Group, has arrived in Ukraine this year. The bulk carrier Bison delivered 80,000 tons of coal from the Group's own company in the USA, United Coal Company (UCC). This coal will help ensure the stable operation of the Group's Ukrainian metallurgical plants after the suspension of operations at the Pokrovsk Coal Group. Metinvest expects to receive one ship with 80,000 tons of American coking coal each month, which will partially meet the needs of Zaporizhstal and Kametstal.
"Despite the challenging conditions in the Ukrainian metallurgy sector due to the ongoing aggression, we have mobilized all available resources to ensure the industry’s operation. The supply of American coal not only supports steel production at our plants in Kamianske and Zaporizhzhia but also provides jobs for tens of thousands of employees and contractors, supports logistics, railways, tax revenues to Ukraine’s budget, and a significant part of Ukrainian foreign exchange exports. Although imported coking coal is more expensive than Ukrainian coal due to logistics, this is an important step in helping Ukraine’s economy," said Yuriy Ryzhenkov, CEO of Metinvest Group.
Metinvest suspended operations at the Pokrovsk Coal Group due to changes on the front line, electricity shortages, and the deteriorating security situation for employees. The Pokrovsk Coal Group is the only producer of coking coal in Ukraine, which is necessary for the operation of metallurgical plants. The coal company supplied a significant share of coking coal for Metinvest’s own consumption and also provided large volumes to customers both in Ukraine and abroad.
After suspending operations at the asset, Metinvest switched to alternative sources of coking coal. Among the measures introduced were the use of accumulated reserves, additional supply of coking coal and coke from external sources, and increased supply from UCC.
"Metallurgical coal production already plays an important role in contributing to economic growth and infrastructure development in the United States. In light of recent events, Ukrainian enterprises of Metinvest Group need a stable and reliable supply of coking coal to maintain continuous steel production. We fully support Metinvest and are committed to contributing to Ukraine’s economic stability and resilience by providing regular coal supplies, which will help maintain uninterrupted steel production in the country," said John Schroeder, CEO of United Coal Company.
United Coal Company is a producer of metallurgical coal operating in the Appalachian region of the USA. The company, founded in 2004, was acquired by Metinvest Group in April 2009.
