By KYIV. Nov 22 (Interfax-Ukraine) – Metinvest in January-September of the current year reduced the production of iron ore concentrate by 59% compared to the same period last year, to 9.704 million tonnes.
According to a press release from parent company Metinvest B.V. on the results of operations for the nine months of 2022 and in the third quarter, the production volumes of mining and processing plants have significantly decreased due to full-scale military operations on the territory of Ukraine. This led to a significant reduction in intra-group consumption due to the shutdown of Mariupol plants from the end of February 2022 and a significant decrease in local demand.
Production volumes were also negatively affected by export logistics restrictions amid the blocking of Black Sea ports. In order to minimize stocks of iron ore products, the group suspended the production activities of Inhulets GOK at the end of June, as well as Pivnichny GOK from the end of August.
As a result, in the third quarter of 2022, compared to the previous quarter, the production of iron ore concentrate decreased by 66%, to 900,000 tonnes; the output of marketable iron ore products decreased by 61%, to 853,000 tonnes. Concentrate for sale was practically not produced during this period due to a decrease in the production of iron ore concentrate, as well as the reorientation of the order book in favor of pellets. The volume of commercial pellets increased by 44%, to 835,000 tonnes.
In turn, in January-September 2022, compared to the same period last year, the production of iron ore concentrate decreased by 59%, to 9.704 million tonnes. The output of commercial iron ore products fell by 47%, to 7.098 million tonnes, including the volume of commercial concentrate decreased by 49%, to 4.402 million tonnes, and commercial pellets – by 44%, to 2.696 million tonnes.
The group’s production of coal concentrate in the third quarter increased by 9% compared to the previous year, to 1.257 million tonnes, mainly due to the increase in production and processing of the Pokrovska coal group, the effect of which amounted to 96,000 tonnes.
