Loss of key mine near Pokrovsk threatens to drive up steel prices, warns Ukrainian Metallurgists’ Union President

The Pokrovsk mine, currently Ukraine’s only source of coking coal within government-controlled territory, plays a critical role in sustaining steel production at the country’s largest mills. However, the potential loss of this mine due to escalating threats could disrupt Ukraine’s steel industry, forcing reliance on costly imports that may further drive up steel prices.

Oleksandr Kalenkov, President of the Union of Metallurgists and Miners of Ukraine, highlighted these concerns during a briefing at the Media Center Ukraine.

“Our industry has been under strain since 2014 when we lost the majority of our coking coal mines. The Pokrovsk Mine Administration, which consolidates several mines, is the sole remaining producer of high-quality K-grade coking coal under Ukrainian control. Everyone is aware of the precarious situation. The risk of losing this mine is real. Despite current challenges, the mines are still operating and supplying us with coking coal, and every effort is being made to ensure the safety of the workers. But we all understand that if the situation deteriorates, operations could cease, and we would lose this crucial source,” Kalenkov warned.

He also acknowledged that while imports provide an alternative, they come with significant challenges. “This isn’t a new scenario for Ukraine. Since 2014, we’ve had to import some coal even when we were producing more steel and had only the Pokrovsk mine left. But if we lose all domestic production, we’ll need to ramp up imports significantly. Why is this problematic? First, it will drive up production costs even further, as imported coal is more expensive and requires transportation to Ukraine. Second, the most efficient delivery route would be through the Black Sea ports, but these remain a bottleneck for us.”

Kalenkov noted that another import option involves transporting coal through European ports and then via Western checkpoints.

“However, we all understand the logistical limitations of these routes. There are strict caps on the volume we can transport, and this will inevitably raise costs. The price hikes will vary by company, but they will amount to tens of percentage points,” he explained.

Read more: https://mediacenter.org.ua/news