The Ukrainian mining-metallurgical sector is in decay. The leading companies are balancing on the edge of profitability. First of all, because of the problems with raw materials deliveries due to the military activity in the East. Iron ore extraction tax also affects this. For the past 1.5 years it has grown 20 times.
Another negative factor is the constant increase of the energy carriers and railroad transportation prices. On the other hand, the price of metal has decreased.
According to Metinvest, the state owes it 2.7 billion UAH. Still the group tries to pay for gas and electricity, as well as its debts to international creditors.
“Our task today is to survive. Three works means over 17 thousand employees and some 15 thousand contractors. It’s important to have work for them”, says the group mining division director Nikolai Ischenko.
Despite the unfavorable condition, this year mining and processing works of the group increased output. In particular UGOK increased its concentrate production by 7% and sinter output – by 12%. (Ukrainian metal)