Page 79 - UKRRptNov21

“We are automating production,” he said. “Blast furnaces are controlled by artificial intelligence, the situation at mining and processing plants is monitored by drones...You will see that everything is controlled by a mouse.”
Metinvest limits Donetsksteel involvement in coal enrichment Shareholders of private joint stock company (PrJSC) Pokrovske Coal plan to approve at their November 19 EGM deals for sales, during 2021, of up to $209mn of raw coal to Svyato-Varvarynska Enrichment Plant LLC, according to the proposed EGM agenda published on October 18. Two other 2021 deals that are also up for approval at the EGM are sales of up to $152mn of coal concentrate to Azovstal and purchases of up to $203mn of coal products from Svyato-Varvarynska. At their April 29 AGM shareholders of Pokrovske Coal approved delegating to the management signing deals for coal concentrate trading, during the period of one year, with Avdiivka Coke ($322mn) and Azovstal (143mn). At their October 6, 2020 AGM shareholders of Pokrovske Coal approved delegating to the management signing deals for sales of up to $437mn of coal products to PrJSC Donetsksteel (until May 1, 2021). Pokrovske Coal’s revenue amounted to $307mn in 2020 (16% less y/y), most of it from sales of raw coal. Its EBITDA was $61.4mn in 2020 (-49%). In 2020, Donetsksteel’s revenue was $377mn (24% less y/y), most of it from sales of coal concentrate, and its EBITDA was $78.2mn (-46%).
Pokrovske Coal, Ukraine’s largest coking coal miner and a subsidiary of Metinvest (METINV), produced 4.58 mmt of raw coking coal (16.8 kt per day) in 9M21, a 7.1% y/y rise, according to Concorde Capital’s analysis of Ukraine's Energy Ministry data. Daily coal production rate at Pokrovske Coal rose 6% to 12.7 kt in September following a 19.5% m/m drop in August and a 22.1% m/m fall in July. In 2020, Pokrovske Coal’s output was 6.13 mmt of raw coking coal (16.8 kt per day), a 22.6% y/y rise. In 2019, Pokrovske Coal produced 5.0 mmt of coal (13.7 kt per day), a 25.8% y/y jump.
Ukraine’s largest steelmaker Metinvest (METINV) reported on November 3 a 16% qoq increase in steel production at its subsidiaries to 2.575 mmt in 3Q21. Azovstal’s output lost 7% qoq to 1.106 mmt in 3Q21, while Ilyich Steel’s output added 4% qoq in 3Q21 to 1.084 mmt, according to the holding’s quarterly operational update.
Steel output at Dnipro Coke, which became a steel producer in August as a result of its acquisition of Dniprovskyy Steel assets, was 385 kt in 3Q21.
Year-on-year, Metinvest's 9M21 crude steel output added 13% to 6.933 mmt.
The holding’s hot iron output in 3Q21, 2.651 mmt, rose 18% qoq, and the 9M21 volume was up 11% y/y to 7.056 mmt.
The 3Q21 output of semi-finished products at Metinvest surged 48% qoq to 1,015 kt as the consolidation of billet production at Dnipro Coke from August added 165 kt in 3Q21. Also, its pig iron output jumped 36% qoq to 396 kt while its merchant slab output added 15% qoq to 454 kt.
The holding’s finished product output inched up 2% qoq in 3Q21 to 1.863 mmt due to a 44% qoq jump in long product output to 338 kt,
79 UKRAINE Country Report November 2021 www.intellinews.com