Metinvest affiliate Pokrovske Coal output jumps 30% in 1H20

Private joint stock company Pokrovske Coal produced
15.5 kt of raw coking coal per day in 1H20 (2.81 mmt for the period), a 29.5%
yoy jump, according to Concorde Capital’s analysis of Energy Ministry data, as
reported by Interfax-Ukraine on July 10.

In 2019, Pokrovske Coal produced 5.0 mmt of coal (13.7
kt per day), a 25.8% yoy jump.

Metinvest (METINV), Ukraine’s largest steelmaker, owns
25% of Pokrovske Coal assets.

Dmytro Khoroshun: The
annualized 1H20 production volume amounts to 5.66 mt (13% more yoy), in line
with 5.5-5.8 mmt we expected in the
beginning of the year.

Given Ukraine’s chronic deficit of coking coal (the
share of imported coking coal in the country’s consumption is about 70%),
Pokrovske Coal assets should have no problem selling their increased production
volumes, despite the recent downturn at the global steel markets.