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Russian advance puts mines near Pokrovsk at risk

The threat of occupation could lead to a decline in steel production and economic losses for Ukraine.

Oct 16, 2024 13:09 139

Russian advance puts mines near Pokrovsk at risk  - 1

As they approach the strategic supply center, the city of Pokrovsk in eastern Ukraine, Russian forces are also approaching a coking coal mine that powers the country's vital steel industry, writes "Reuters", quoted by News.bg.

The Russian forces are 12 km from the city and have more soldiers and equipment. Thousands of residents have fled, and there is a risk that key road and rail links to other cities will be cut.

About 10 km west of the city is a mine that produces a special type of coal used to produce coke - a key element in steel production. Steel production is Ukraine’s second-largest source of hard currency revenue after agriculture.

In the first eight months of 2024, metal exports were worth almost $2 billion. Oleksandr Kalenkov, head of the Ukrainian Steel Producers Association, warned that the loss of the Pokrovsk mine – the only domestic source of coking coal – could lead to a decline in steel production. According to him, if the Pokrovsk mine is lost, production could drop to 2-3 million tons of steel per year, compared to the projected 7.5 million tons this year.

Anatoly Starovoit, head of the Ukrkoks association, said that in 2023, Ukraine produced about 3.5 million tons of coke, using coal mined entirely in Pokrovsk. Starovoit pointed out that coal imports would be difficult, especially by sea, due to military risks and restrictions on ports that are designed primarily for exports, not imports. This would increase production costs for the steel industry.

Alternative supplies could be provided by the United States or some African countries, but they would not be sufficient. Steel producers in Ukraine are trying to find alternative sources of coking coal, as in the event of the occupation of the Pokrovsk mines, imports would be inevitable and would make Ukrainian steel less competitive.

In January-August 2024, the country produced over 4.3 million tons of rolled steel, of which 66% was exported, mainly to European Union countries.

On October 13, Russia announced that it had captured the village of Mykhailivka in Donetsk Oblast, near the city of Pokrovsk. The head of the Pokrovsk city administration, Sergei Dobryak, said on October 4 that Russian troops were 7 kilometers from the city and 80% of critical infrastructure had been damaged.

According to Lieutenant Colonel Janek Kesselman of the Estonian Defense Forces, Ukrainian troops may be forced to leave Pokrovsk by the end of the year.

On October 1, Russian forces captured another strategically important city - Ugledar.