Ukrainian steelmakers are raising alarms as Russian troops advance toward a vital coking coal mine near Pokrovsk, a key asset for the nation’s steel production. The mine, located just 10 kilometers west of the embattled town, supplies coal critical for producing coke, a key ingredient in steel manufacturing—Ukraine’s second-largest export after agriculture.
Russian forces are now roughly 12 kilometers from Pokrovsk, threatening to sever crucial transportation links and overwhelm Ukrainian defenses. Thousands of civilians have already fled the area, heightening concerns over the safety of the mine.
The potential loss of this domestic coking coal source would devastate Ukraine’s steel industry, which generated almost $2 billion in exports between January and August 2024. According to Oleksandr Kalenkov, head of the Ukrainian Steelmakers’ Association, steel production could plummet from a projected 10 million metric tons next year to just 2-3 million if the mine is captured.
“If we lose Pokrovsk, our output could collapse,” Kalenkov warned.
Steelmakers are bracing for severe disruptions, as importing coking coal from the United States or South Africa would drastically increase production costs, further weakening Ukraine’s economy, which is already reeling from more than two years of Russian invasion.
While some companies, like ArcelorMittal Kryvyi Rih, have been stockpiling coal to safeguard against potential shortages, alternatives remain limited. Ukrainian ports on the Black Sea face military risks and are better suited for exports than importing large volumes of coal, further complicating the logistics.
Anatoliy Starovoit, head of the Ukrkoks Coke Association, underscored the dilemma: “If Pokrovsk falls, we don’t know where else to get the coal we need.”
As Ukrainian steel producers scramble to find alternative sources of coke and increase their stockpiles, the industry’s future—and its contribution to the nation’s economy—hangs in the balance.
