The government is urged to implement some measures that will keep the mining complex operational.
The Northern Mining and Processing Plant appealed to Prime Minister Denis Shmygal to help the mining and smelting complex due to the biggest crisis in the history of the industry. An open letter was sent to the head of government.
The industrial crisis was caused by the complication of logistics, the increase in transportation costs and, at the same time, the fall in world metal prices.
In particular, the destruction of the enterprises of Mariupol Azovstal and Ilyich Iron and Steel Works by the invaders affected the difficult situation of SevGOK. Also, other Ukrainian metallurgical plants reduced production and were loaded by only 15%, and exports were limited due to the blockade of ports.
“In addition, the cost of our goods has increased significantly and prices have decreased. Thus, the railway tariff for ore has critically increased by more than 140%, the rent has increased by 160%, the cost of energy resources and imported materials have increased. rising. At the same time, in the past few months, iron ore prices have fallen by more than a third compared to last year’s prices. Limited sales and not being competitiveness of the Ukrainian ZRS in the world market led to the fact that SevGOK forced to stop mineral mining and reduce production in July to 18% of the pre-war level,” the letter said.
The company named the necessary actions to save the industry: it is necessary to reduce the cost of Ukrzaliznytsia cargo transportation, temporarily cancel the rent for the extraction of iron ores and the environmental tax for non-toxic mining waste , reduce the cost of electricity and gas, and unblock the export of products through ports.
In this way, SevGOK is sure, it is possible to increase the workload of production capacities, retain personnel and continue to help the army and the victims of war.
Earlier, the Ukrainian metallurgist turned to President Volodymyr Zelensky for help due to the biggest crisis in the history of the industry. Without government help, Ukraine could lose its mining and metallurgical complex, which provides 33% of exports, 10% of GDP and half a million jobs.
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Source: korrespondent
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