Metinvest subsidiary Pokrovske Coal launches new longwall

Pokrovske Coal, Ukraine’s largest coking coal miner
and a subsidiary of Metinvest (METINV), launched a new longwall on Jan. 14 with
reserves of over 900 kt of raw coal, according to the company’s Jan. 25 press
release.

The mining operations will be carried out in difficult
conditions due to the longwall having a thin seam and the presence of
geological disturbances, the release said.

Recall, Pokrovske Coal planned to launch four new longwalls
in July-August of 2021, but later it shifted the launch
of the first of them to November 2021.

Dmytro Khoroshun: Actual
production volumes will be the best indicator of Pokrovske Coal’s progress with
its investments, and the news of the longwall launch is a reason for optimism.

We tentatively expect Pokrovske Coal’s 2022 output at
6.4-7.3 mmt (17.5-20.0 kt per day), or 3-17% more yoy.

We maintain our neutral view on METINV bonds.