Posted on 02 Mar 2022
Metinvest has declared force majeure to customers and partners due to the impact of Russia’s invasion of Ukraine.
“The ongoing hostilities in Ukraine, the military blockade of seaports, the destruction or threat to land infrastructure may prevent the company from fulfilling its contractual obligations,” the company says. “As of 24 February, martial law has been introduced all over Ukraine. In addition, the National Bank of Ukraine imposed a moratorium on cross-border payments, which may also impede our contractual payments into and out of Ukraine.”
Earlier, on Monday, the company said it continues to mine iron ore in Kryvyi Rih at the Central GOK and Inguletsky GOK (see Kallanish passim). The enterprises of the Pokrovskaya Coal Group were operating as usual. At Kametstal, the former DMK, operations continued at the steelmaking and coke-chemical divisions. Zaporizhstal, part of Metinvest, was operating normally, with all production units in operation.
Last week, Metinvest suspended production at its Mariupol-based Ilyich and Azovstal plants following the invasion.
ArcelorMittal Kryvyi Rih (AMKR) meanwhile announced on Tuesday it has suspended the operation of blast furnace No.9 due to a lack of raw materials. Blast furnaces No.6 and No.8 will continue to operate normally, the company tells Kallanish.
The plant already announced the suspension of steel production to a technical minimum due to the war, with output stopping at its underground mines.
AMKR has agreed with Ukrainian rail operator Ukrzaliznytsia to transport coal for the plant via a new route “with maximum flexibility”. ArcelorMittal Group enterprises will ensure the supply of necessary raw materials, in particular coal, to Ukraine’s western borders. From there, Ukrzaliznytsya will transport them by train to Kryvyi Rih. The first batch of coal is scheduled to arrive at AMKR within 7-10 days.
Centravis has extended the shutdown of production until 9 March, after it stopped work on 28 February.
Interpipe is producing anti-tank hedgehogs, and organising the supply of ammunition and building materials for the Ukrainian military.
Other large Ukrainian ferrous enterprises, like DMZ and Ferrexpo, so far remain in operation.
Source:Kallanish
