MINEX Forum

Tag: Metinvest Group

  • Metinvest’s Northern Mining Boosts Production with Second Roasting Machine

    Metinvest’s Northern Mining Boosts Production with Second Roasting Machine

    Metinvest Group’s Northern Mining and Processing Plant (Northern Mining) has launched a second roasting machine to meet increased demand from European partners, according to Metinvest.Media. Now, both LURGI 552 A and LURGI 552 B are operational, enhancing pellet production.

    The decision was preceded by extensive preparations and repairs. Last autumn, both units underwent comprehensive maintenance, with LURGI 552 B receiving quarterly repairs and an equipment inspection to boost reliability. LURGI 552 A also had similar improvements, including an overhaul of the rotary intake system to ensure efficient product shipment.

    To fulfill European contracts on time, the company decided to operate both machines simultaneously. This required additional workforce efforts, with employees at Pelletizing Shop No. 2 (PSM-2) working weekends and night shifts. The launch process took a full week, involving detailed inspections of all mechanisms and equipment.

    Currently, both machines are operating at a capacity of 460-463 tonnes of pellets per hour, ensuring timely deliveriesand stable exports to European customers.

    “The market sets its own rules, and we must maintain the company’s reputation and competitive edge. This brings new challenges for Northern Mining’s teams, especially at the Central Processing Plant-2, where specialists will need to periodically operate the second roasting machine to meet production goals. However, our employees are rising to the challenge, demonstrating dedication and responsibility. More production means higher revenue, increased tax contributions, and more funds for wartime needs,” said Dmytro Malykh, Director of Production and Planning at Metinvest’s Mining Division.

    Earlier, GMK Center reported that 2024 marked a turning point for Northern Mining due to the reopening of Odesa ports, which enabled the resumption of iron ore exports by sea. This development helped stabilize production and increase capacity. Additionally, operations at the Gannivsky open pit resumed during the summer, reaching nearly full capacity by the end of the year.

  • Ukrainian Steel Industry Embraces Digital Transformation for Environmental Sustainability

    Ukrainian Steel Industry Embraces Digital Transformation for Environmental Sustainability

    In a bid to enhance environmental sustainability, Yuriy Ryzhenkov, CEO of Metinvest Group, emphasizes the pivotal role of digital technologies in revolutionizing the Ukrainian steel industry. Speaking at the B7 Italy 2024 conference, Ryzhenkov highlighted the transformative potential of IT and artificial intelligence (AI) in steering traditional sectors towards greener practices.

    Ryzhenkov underscored the remarkable strides made by the Ukrainian steel sector, leveraging AI and analytics to bolster process efficiency. Notably, Azovstal surpassed competitors in 2021, courtesy of AI applications, while augmented reality expedited maintenance tasks and advanced computer vision systems elevated product quality standards. Despite the challenges posed by geopolitical tensions, internal data management systems ensured operational continuity during tumultuous times.

    Acknowledging the global momentum towards environmental initiatives like the Green Deal, Ryzhenkov emphasized the indispensable role of metallurgy in this trajectory. While the industry grapples with traditional frameworks, digitalization emerges as a catalyst for fostering sustainability, efficiency, and competitiveness. Ryzhenkov stressed the necessity of integrating digital and green transitions within heavy industries to align with evolving global paradigms.

    However, Ryzhenkov cautioned against the inherent challenges in navigating this transition, citing a shortage of IT specialists adept at facilitating transformation. The evolving landscape necessitates a paradigm shift in talent acquisition, with Metinvest now training IT professionals to spearhead green and digital initiatives, marking a significant departure from conventional recruitment strategies.

    The B7 Italy 2024 conference, hosted by Confindustria, provided a platform for dialogue among G7 nations’ businesses and governments, amplifying discussions on sustainable industrial practices. Amidst geopolitical uncertainties, Ryzhenkov reaffirmed Metinvest’s unwavering commitment to green strategies, aligning with Ukraine’s accelerated pursuit of EU integration.

  • “Metinvest” sold more than half of its products in the EU

    “Metinvest” sold more than half of its products in the EU

    In the first half of 2023, the Mining and Metallurgical Group “Metinvest” sold 55% of its metallurgical and mining products in the countries of the European Union (EU). At the same time, 35% of this production was sold in Ukraine, 2% in MENA countries, 1% in CIS countries, and 7% in other regions. The total revenue amounted to $2.423 billion.

    It is noted that sales of metallurgical products decreased by 33% in the first half of 2023 compared to the same period of the previous year. This was mainly due to the reduction in production volumes at Ukrainian metallurgical enterprises, as well as due to the decrease in average selling prices. However, this situation was partially offset by the increase in the volumes of billets, long products, and coke sales.

    The positive dynamics for the first half of 2023 compared to the second half of 2022 is due to higher sales volumes of finished products, semi-finished products, and coke.

    However, sales of iron ore products also decreased by 32% in the first half of 2023 compared to the first half of 2022, mainly due to falling iron ore prices and reduced shipments due to the blockade of Ukrainian ports. Nevertheless, this was partially offset by increased sales volumes of sinter and concentrate of coking coal.

    The Metinvest Group consists of mining and metallurgical enterprises in Ukraine, Europe, and the United States, with the main shareholders being SCM Group and Smart-Holding. The managing company of the group is Metinvest Holding LLC.

  • Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    Metinvest Group Invests in Polish Logistics Center to Boost Ukrainian Metal Exports

    In a recent interview with leading Polish business publication Business Insider, CEO Yuriy Ryzhenkov unveiled Metinvest mining and metallurgical group’s plans to invest in a logistics center in Poland. The objective behind this investment is to enhance the supply of Ukrainian metal products for export.

    Ryzhenkov revealed that Zaporizhstal and Kamet Steel, two subsidiaries of Metinvest, are currently operating at 65-70% and 75% of their respective capacities. Approximately 25% of their products are sold within the domestic market, while the majority is exported, primarily to European Union countries. Notably, neighboring nations such as Poland, Slovakia, the Czech Republic, Romania, and Bulgaria are significant destinations for these steel products. The company also caters to customers in countries like Italy, Germany, and France.

    Ryzhenkov acknowledged that steel mills are faring relatively well in terms of sales. However, iron ore enterprises face different challenges. Aside from serving domestic consumption, China was a key buyer. Unfortunately, due to current circumstances, exports to China are nearly impossible as Black Sea ports are blocked. Consequently, EU border countries remain as buyers. Iron ore enterprises are currently operating at 35-40% of their capacity. Efforts were made to send raw materials to China through Romanian and Polish ports, but the logistics economics proved unviable in the current market conditions.

    Ryzhenkov pointed out that the company’s coal production in Ukraine is operating at full capacity. The coal is supplied to Metinvest’s coking enterprises within Ukraine and is also sold in the local market. Exports, mainly to Slovakia and Poland, account for the remaining portion.

    The CEO also mentioned that Metinvest’s 2022 steel production decreased by 69% compared to the previous year, significantly impacting various financial indicators, with profits in 2022 down by 54% compared to the prior year.

    Despite these challenges, Metinvest’s overarching strategy remains unchanged. The company aims to integrate Ukraine and its iron ore resources into the European steel production chain. Consequently, Metinvest continues to seek opportunities to acquire assets that facilitate the utilization of Ukraine’s raw materials to produce goods in the EU and supply them to European consumers.