The first vessel chartered by Metinvest Group to transport coking coal from the United States this year has arrived in Ukraine. The bulk carrier Bison delivered 80,000 tons of coal from United Coal Company (UCC), a US-based subsidiary of the Metinvest Group, to help ensure the sustainable operation of Metinvest's Ukrainian steel mills following the suspension of the operations at the Pokrovske Coal group.
Metinvest announced this in a statement, the CFTS portal reports.
Metinvest now expects to receive a ship loaded with 80,000 tons of American coking coal per month, which will help partially meet the needs of both the Zaporizhstal Iron and Steel Works and the Kamet Steel plant.
"Despite the extremely difficult conditions in the Ukrainian steel industry due to the ongoing invasion by the aggressor, we have mobilized all available resources to ensure that the industry remains operational. The supply of American coal will not only support steel production at our plants in Kamianske and Zaporizhia but also provide jobs for tens of thousands of employees and contractors, support the logistics and rail sectors, increase tax revenues to the Ukrainian budget, and provide a significant portion of Ukraine's foreign currency exports. Although imported coking coal is more expensive than Ukrainian coking coal because of logistics, this is an important step to help Ukraine's economy," said Yurii Ryzhenkov, CEO of Metinvest Group.
Metinvest suspended operations at the Pokrovske Coal group because of changes in the situation on the frontline, electricity shortages, and a deteriorating security situation for workers. Pokrovske Coal is Ukraine's only producer of coking coal, which is essential for the operation of metallurgical plants. Pokrovske Coal met a significant portion of Metinvest’s own coking coal needs and also supplied significant volumes of coking coal to consumers both in Ukraine and abroad.
Following the suspension of operations at Pokrovske Coal, Metinvest switched to alternative sources of coking coal. The measures taken include the use of accumulated stocks, the purchase of additional coking coal and coke from third parties, and increased supplies from UCC.
"Metallurgical coal production already plays a crucial role in fostering economic growth and infrastructure development domestically, in the US. Given the recent developments, Metinvest’s production in Ukraine needs a stable and reliable supply of coking coal to maintain critical steelmaking operations. UCC remains committed to supporting the group and contributing to economic stability and resilience in Ukraine by ensuring consistent coal deliveries that will enable uninterrupted steel production in the country," said John Schroder, CEO of United Coal Company.
United Coal Company is a metallurgical coal producer operating in the Appalachian region of the United States. The company was founded in 2004 and acquired by Metinvest in April 2009.
