Wartime business: due to the situation in Pokrovsk, Metinvest may sell its assets in the United States
5 August 2025 12:11
Ukrainian mining and metals corporation Metinvest has announced that it has received an offer to divest its US asset, United Coal, a coking coal producer. The group’s management is currently analyzing the offer, "Komersant Ukrainian" reports, citing Interfax-Ukraine.
According to a report published by the company on the Irish Stock Exchange, Metinvest has resumed sea deliveries of coking coal from United Coal to ensure the operation of its metallurgical enterprises in Ukraine after the suspension of Pokrovskugol’s operations due to military operations.
Although this step helped maintain production continuity, the American asset faced serious financial difficulties. Rising operating costs, logistics problems and unfavorable pricing conditions on the global coking coal market led to United Coal’s negative EBITDA of $42 million in 2024. This year, the situation continues to deteriorate due to difficult geological conditions and market volatility.
Due to these factors, Metinvest is considering various strategic scenarios for the asset’s development. The company confirmed that it had received a non-binding offer for the possible disposal of United Coal and said it was studying the terms in detail. The final decision will be announced to the market later.
In January this year, Metinvest suspended operations at Pokrovskugol due to the escalating situation at the frontline, energy problems and deteriorating security conditions. Since then, the company has been partially compensating for the shortage of coking coal through its US subsidiary and imports from third countries.
“Metinvest combines mining and steel assets in Ukraine, the EU, the UK and the US. The controlling stake is held by SCM Group (71.24%) and Smart Holding (23.76%).
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“Metinvest: background
“Metinvest is Ukraine’s largest vertically integrated steel and mining group, which is one of the world’s leading producers of iron and steel products.
Ownership structure: 71.24% of the shares are owned by SCM Group (a structure of Rinat Akhmetov), 23.76% by Smart Holding (associated with Vadim Novinsky).
Key assets:
- Metallurgical plants: “Azovstal (Mariupol), Ilyich Iron and Steel Works (Mariupol), Zaporizhstal.
- Mining companies: “Ingulets Mining, Northern Mining, Central Mining.
- Coke plants: “Avdiivka Coke and Zaporizhzhia Coke.
- International assets in the USA, Italy, Bulgaria and other countries.
Products: iron ore raw materials, coke, pig iron, steel, rolled products, and hardware.
Impact of the war. Some enterprises are shut down or operate in a limited mode due to the hostilities. “Azovstal and Ilyich Iron and Steel Works were destroyed during the defense of Mariupol in 2022. The company reoriented part of its production to European assets and is developing logistics routes through Ukraine’s western borders.
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