Southern GZK Suspends Mining: What’s the Reason?
28 July 19:24
The Southern Mining and Processing Plant is temporarily suspending mining operations and partially scaling back its activities. The decision is due to complications in maritime logistics caused by Russian attacks on civilian merchant ships heading to Ukrainian Black Sea ports. This is stated in a press release from the Southern Mining and Processing Plant, according to "Komersant Ukrainian".
According to the company, the decision to temporarily suspend operations was a necessary step following a prolonged period of operating under wartime conditions.
“The Southern Mining and Processing Plant has begun the process of suspending mining operations and temporarily scaling back operations. The decision was made due to the aggressor country’s constant attacks on civilian merchant ships heading to Ukrainian Black Sea ports, which has effectively blocked their operations. The company will continue to fulfill its obligations to employees and partners and will resume mining operations when the security situation allows,” the statement reads.
Why did this happen?
Pivdenne GZK noted that since the start of the full-scale invasion, the enterprise has been operating under a number of critical conditions: constant shelling, power outages, and rising logistics costs.
“The suspension of production at the Southern GOK was a necessary measure that we delayed as long as possible. Since the start of the full-scale invasion, the plant has been operating continuously under a number of critical factors: enemy shelling, power outages, a sharp rise in logistics costs, the introduction of the European Carbon Border Adjustment Mechanism (CBAM), and the tightening of EU quotas on products from the Ukrainian mining and metallurgical sector. In July 2026, these challenges were compounded by a significant deterioration in the security situation for maritime logistics passing through Ukrainian Black Sea ports,” the statement reads.
The company reported that due to the suspension of shipping, shipments of iron ore ready for export have accumulated in the ports, which became one of the reasons for the temporary adjustment of production processes.
“The aggressor’s actions have led to the suspension of maritime shipping to Ukraine’s Black Sea ports due to shipowners’ concerns about the safety of their crews. At the same time, several shiploads of iron ore intended for export have accumulated both in the ports and at the Southern GOK’s warehouses. Due to the inability to store the mined product, the plant was forced to temporarily suspend operations,” the statement reads.
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How the decision will affect employees
Southern GOK emphasized that the company will continue to fulfill its obligations to employees and partners.
During the temporary suspension of mining operations, employees will be assigned to repair and maintenance work.
The company also reported that it expects to resume production in August 2026, security conditions permitting.
Ukraine Needs to Strengthen Port Security
The company called on the government and international partners to strengthen measures to protect port infrastructure and civilian shipping, as unblocking logistics routes for Ukraine’s Black Sea ports is a critical task for the sustainable operation not only of the mining and metallurgical industry but also of the entire Ukrainian economy.
Export-oriented industries, such as metallurgy or the agricultural sector, cannot fully ship their products to customers without access to the country’s seaports, explained Southern GOK.
“This issue concerns not only the survival of individual businesses, but also tax revenues for budgets at all levels, the inflow of foreign currency earnings into the country, and the continuation of the comprehensive support that enterprises provide to local communities and the Ukrainian Armed Forces,” the company emphasized.
As a reminder, for the past several weeks, Russia has been attacking Odesa and the surrounding region, ports, and the Black Sea grain corridor with missiles and drones. As a result, ships have stopped calling at Ukrainian ports, effectively halting maritime exports.
On July 27, the UN Security Council held an emergency meeting, during which it was noted that Russia’s attacks on ports and ships threaten global food security.
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