Metinvest subsidiary Pokrovske Coal might raise output 25% in 2022

Svyato-Varvarynska enrichment plant plans to process
about 650 kt per month, or 7.8 mmt per year (21.4 kt per day), of raw coal in 2022,
according to a Jan. 6 report by pokrovsk.news, a local news site, which cited
Sergiy Vasylenko, the plant’s CEO.

The planned 2022 processing volume is 25% more than
the 6.2 mmt that the plant processed in 2021.

Svyato-Varvarynska processes almost exclusively the
raw coal mined by Pokrovske Coal, Ukraine’s largest coking coal miner. The two
companies are subsidiaries of Metinvest (METINV), Ukraine’s largest steelmaker.

Recall, in December Pokrovske Coal’s CEO discussed the
company’s plans to raise output to 7 mmt (19.2 kt per
day) in 2022, or 12% more yoy. In December, Pokrovske Coal produced 18.7 kt per
day of raw coal.

Dmytro Khoroshun: Pokrovske
Coal’s 2022 output will likely depend on its success in launching and operating
its new longwalls.

The miner planned to launch four new longwalls
in July-August, but later shifted the launch of the first
of them to November.

We maintain our neutral view on METINV bonds.