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Metinvest introduces a new operating model for mining businesses

Photo: metinvestholding.com

Central, Inguletsk and Northern GOKs will have a single administrative team and functional managers. At the same time, each mining and processing complex will retain its legal status.

Metinvest is creating a unified administrative and management center to manage the Central, Inguletsk and Northern mining and processing plants. The group’s press service reported this on Tuesday, April 2.

The mining department in the operational directorate structure of the group is headed by Igor Tonev, who was also appointed to the position of single general director of three mining and processing plants. That is, the plants will now have a single administrative team and functional managers. At the same time, each mining and processing enterprise will retain its legal status: the centralization of management functions of mining and processing enterprises will only affect administrative personnel and will not affect blue-collar workers.

“The introduction of a new management model for mining and processing plants, which have been operating at partial capacity since the beginning of the war, will help improve the efficiency of businesses, because now the ore beneficiation processes and the production of iron ore concentrate is connected to a common technological chain for all plants,” the statement said.

The press service added that the creation of a single control center will also allow the optimization of both business processes of enterprises and the centralization of some service functions, which will significantly reduce administrative costs and increase the economic sustainability of mining and processing plants.

“In the context of current challenges, without an objective opportunity to bring the workload of mining and processing plants to the optimal level, we are looking for the effect of combining their capabilities and business processes. The creation of a single integrated -joint mining and processing The complex will significantly increase the efficiency of these processes, and will also contribute to the creation of new synergistic connections between enterprises.” ,” commented Metinvest CEO Yuri Ryzhenkov at the introduction of the new model.

According to Igor Tonev, the new model will make it possible to “effectively distribute personnel between mining and processing plants to quickly close gaps and replace the services of outsiders, share best practices and quickly to implement them.”

It is expected that all the processes of transferring the businesses will be completed within a few months.

Let’s recall that in mid-March, the metallurgical holding Metinvest published a financial report for 2023, according to which an annual consolidated net loss of $194 million was recorded. At the end of the year, the holding reduced its steel and cast iron production. by 31% – up to 2.03 million tons.

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Source: korrespondent

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