Ukrainian economy in danger as Russians break into Ukraine's only coking coal mine

The loss of Ukraine's coking coal mine near Pokrovsk, which is in the midst of active hostilities, could lead to a significant reduction in steel production in the country.

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This was reported by Reuters with reference to the head of the Association of Metallurgists of Ukraine, Oleksandr Kalenkov.

The mine is located 10 km west of the town of Pokrovsk. The steel industry is the second most profitable sector in Ukraine after agriculture, and coking coal is critical for the steel industry. Therefore, a shortage will make it much harder to supply steelmakers, which in turn will have a negative impact on the entire Ukrainian economy.

"We could produce up to 7.5 million tonnes of steel by the end of the year, and next year we saw an increase in production to over 10 million. But if we lose Pokrovsk, we will fall to 2-3 million tonnes," said Aleksandr Kalenkov.

In addition, imports of coke from abroad will increase the price of Ukrainian steel, which may make it less attractive on the global market. Currently, the most likely sources of coke are the US, South Africa and other African countries.

Founded in 1990, Pokrovske Mine Administration is Ukraine's largest coking coal producer. The mine's commercial reserves exceed 200 million tonnes.

Source: Reuters