17:29 01.10.2020

AMC permits Metinvest to buy Pokrovske mine directorate, Sviato-Varvarynska enrichment factory

2 min read
AMC permits Metinvest to buy Pokrovske mine directorate, Sviato-Varvarynska enrichment factory

 Metinvest, the largest mining and metallurgical holding in Ukraine, may acquire Industrial Coal Holding LLC (ICH), Pokrovske Mine Directorate, Sviato-Varvarynska Enrichment Factory LLC and Mine Construction Company LLC.

According to the Antimonopoly Committee of Ukraine (AMC), it provided Metinvest with the appropriate permits following the consideration of four cases of concentration, which are a single transaction, as well as permits for the purchase of Sviato-Pokrovska Mine No. 3, Vuhlepromtrans, Sviato-Illinsky Machine Building Plant LLC, PrJSC Automobile Enterprise Ukrbud and Mine Construction Management Department No. 1.

The AMC notes that its attention in this transaction was focused on the coking coal market, since the aggregate shares of its participants in other markets are insignificant.

According to the release, it was found that the total share of concentration participants (taking into account intra-group consumption and imports) in the coking coal market in 2016-2019 was 11.9-23.2%, and the share of imports on it was 66-75%, which makes this market import-oriented.

"Due to production of Ukrainian coking coal, it is possible to provide only about 20% of the total needs of consumers - Ukrainian coke producers. Any of the market participants has the opportunity to substitute coking coal import within a reasonable time frame and at reasonable costs, since imported products are more competitive than domestic," the AMC said.

The ministry also indicated that the production capacity of the entire coal industry in Ukraine is used only by 69%, and the coking coal production capacity of some mines of the Ministry of Energy is significantly underutilized and has a reserve of use.

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