This was reported by Reuters.
The mine, which is located about 10 km west of Pokrovsk, is Ukraine's only source of coal used to produce coke, a key component in steelmaking. Metallurgy is Ukraine's second most important foreign exchange earner after agriculture.
The head of the Association of Ukrainian Metallurgists, Oleksandr Kalenkov, warns that the loss of the Pokrovsk Mine could lead to a significant reduction in steel production.
According to him, the production was expected to reach 7.5 million metric tonnes of steel in 2024 and 10 million in 2025, but if Pokrovsk is lost, this figure could drop to 2-3 million tonnes, which is 50% and 70% less.
The problem is exacerbated by the difficulty of importing coal due to military risks and the fact that Ukrainian ports are more suited to exports than imports. At the same time, O. Kalenkov said, coal imports will increase production costs.
Alternative sources of coal could come from the United States and African countries, including South Africa. Some companies, such as ArcelorMittal Kryvyi Rih, have been stockpiling as a precaution against possible supply disruptions.
A steel industry source said that producers hope to find alternative sources of coking coal in other regions of Ukraine if the Pokrovsk mines are seized, but imports will undoubtedly be necessary. This will increase production costs, making Ukrainian steel less competitive.
